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Jobless Rate Rises To 9.8% Unexpectedly

From a gobsmacked Associated Press:

Jobless rate rises to 9.8 pct. as job growth slows

By Jeannine Aversa, AP Economics Writer
December 3, 2010

WASHINGTON – The nation’s unemployment rate climbed to 9.8 percent in November, a seven-month high, as hiring slowed.

Lest we forget, we were told by the Labor Department that new unemployment claims were down every week during the month of November.

Indeed, only yesterday the same Jeannine Aversa told us: "The four-week moving average of claims, which smooths [sic] volatility, fell to 431,000 last week. That’s a two-year low."

So how is it possible that new unemployment claims for the month could be at a two year low, while unemployment goes up to "a seven month high"? Somebody has been lying to us here, and it looks like it is the Obama administration.

Employers added only 39,000 jobs last month, a sharp decline from the 172,000 created in October, the Labor Department reported Friday. The weakness was widespread. Retailers, factories, construction companies, financial firms and the government all cut jobs last month.

So the recent reports about the upturn in construction and retail sales were probably lies, too.

Many economists were predicting the addition of nearly 150,000 jobs. The economy has recently flashed signs of gaining momentum with busier factories, rising auto sales and a good start to the holiday shopping season. But that didn’t translate into mass hiring in November.

These would be the same economists who have erred on the side of optimism ever since Mr. Obama assumed office. And the same economists who talked us into the recession when Mr. Bush was President.

In fact, private companies — the backbone of the economy — created 50,000 jobs. That was down significantly from the 160,000 private-sector jobs created in October and was the smallest gain since January.

Suddenly, the AP is talking about private companies being "the backbone of the economy."

With hiring so weak, the unemployment rate rose from 9.6 percent to 9.8 percent. The jobless rate has now topped 9 percent for 19 straight months, the longest stretch on record.

In case anyone doubted that this is the ‘new normal’ under Mr. Obama.

All told there were 15.1 million people unemployed in November.

Adding those unemployed people to others who are working part time but would prefer full-time jobs and those who have given up looking for work, 17 percent of the labor force is "underemployed." That was the same as October. Still, the figure remains close to a record high set last year.

This is another new development from the AP. Their unemployment reports usually ignore the full unemployment numbers. They usually only mention the 8 million people currently receiving unemployment benefits.

Another grim figure: There was a record 1.3 million "discouraged" workers in November. Those are persons not currently looking for work because they believe no jobs are available to them.

So clearly the best thing to do is to hit employers (aka millionaires and billionaires) with one of the largest tax hikes in history. That should put the economy out of its misery once and for all.

For the record, here are the headlines and lede pargraphs for the weekly unemployment reports from the Associated Press for the month of November:

Jobless claims fall sharply to 4-month low

By Christopher S. Rugaber, AP Economics Writer
November 10, 2010

WASHINGTON – Fewer people applied for unemployment aid last week, the third drop in four weeks and evidence that the job market is showing signs of life…

Jobless claims rise but broader trend offers hope

By Christopher S. Rugaber, AP Economics Writer
November 18, 2010

WASHINGTON – The number of people applying for unemployment benefits barely rose last week, offering some hope that the job market may be improving. But claims need to fall further to bring down the 9.6 percent unemployment rate…

Unemployment claims drop sharply to 407K

By Christopher S. Rugaber, AP Economics Writer 
November 24, 2010 

WASHINGTON – The number of people applying for unemployment benefits fell sharply last week to the lowest level since July 2008, a hopeful sign that improvement in the job market is accelerating…

Jobless claims rise, but trend shows improvement

By Jeannine Aversa, AP Economics Writer
December 2, 2010

WASHINGTON – More Americans applied for unemployment benefits last week, but the broader trend in layoffs points to a slowly healing job market. The average over the past month fell to a two-year low…

And every last one of those reports assured us that the jobs situation was getting better.

This article was posted by Steve on Friday, December 3rd, 2010. Comments are currently closed.

17 Responses to “Jobless Rate Rises To 9.8% Unexpectedly”

  1. GetBackJack says:

    This is so …. unexpected™

    (I just went ahead and had a stamp made up so I don’t have to keep typing that over and over)

  2. arb says:

    Future AP headline:

    “Sun rises in East. Who knew?”

  3. proreason says:

    One thing they can’t control is how words are used by the population.

    The definition of the word “journalism” has morphed into “propaganda by people who work for the state run media”

    • GetBackJack says:

      You make an excellent point, Pro. I wrote an article once about Journalism vs. Reporting.

      Journalism is an exponent of a faith-based view of Life. A pallid, vile and decrepit faith to be sure, but faith all the same.

      Journal c.1355, “book of church services,” from Anglo-Fr. jurnal “a day,” from O.Fr. journal, originally “daily” (adj.), from L.L. diurnalis “daily” (see diurnal). Sense of “daily record of transactions” first recorded 1565; that of “personal diary” is 1610, from a sense found in French. Journalism is 1833 in Eng., likewise from Fr. (where it is attested from 1781).

      Journalism is the daily musings of people who “journal”; an expression of their world-view and not at all the structured and difficult task of Reporting. We know how far this Estate has fallen by their utter blankness about the term they use to describe that they do! Reporting is straightforward, difficult to verify, built on specifics and depends on a keen sense of observation married to the rigor of correct use of the King’s English.

      Journalism is freed from these constraints. Flow of consciousness (and stupid to boot)

      Modern journalism began with Karl Marx, who drilled it into his follower’s and sycophant’s heads – “a newspaper’s proper role is to undermine and destroy the foundations of whatever society it finds itself in”.

      I give witness his followers rage on around us.

  4. untrainable says:

    If this were a simple guessing game with only 2 answers (up or down) the laws of probability suggest that they would be right 50% of the time. These guys are beyond an anomaly. Consistently wrong for 2+ consecutive YEARS!!?? Someone should commission a blue ribbon panel to study these weasels.

  5. mr_bill says:

    The recovery summer is over.

  6. Right of the People says:

    I once thought about changing my major to economics but my crystal ball was broken so I had to get a real degree.

  7. 64dodger says:

    Sung to the tune of Beverly Hillbillies)

    Come and listen to a story about a man named Fred.
    An unemployed stiff, barely kept his family fed,
    Then one day he was begging for some food,
    And down from the heavens came a smooth talkin’ dude.

    Obama that is,
    you know.. the big cheese, the one ya need to see.

    Well the first thing you know ol’ Fred’s been duped again.
    Kinfolk said, “Fred move away, you dear!”
    Said our capitol is the place you ought to be.
    So they loaded up the truck and moved to D.of C.

    Washington D.C., that is.
    Black gold, corruption, and ACORN …oh gee

    Well the first thing ya know ole’ Pelosi’s a millionaire
    Said “Harry Reid, lets take wealth from here”
    And Pelosi said, yes let give illegals free fare,
    And Reid agreed, and made them a rich heir

    To the throne that is, …
    Donald Trump’s, Bill Gates’, ya know…their fortune..

    Now every DC Democrat’s dancin’ round with glee..
    Cause Pelosi and Reid did their dirty deed
    Now every American is equally free
    Of never worrying, its Totally Free

    Money, that is….
    FREE money…. we’re dumping it out of airplanes..come’n get it!
    Black gold…

  8. Chinnubie says:

    Not sure anybody will read this but, there was an article in the New York Times that describes how us Americans had better just get used to these high unemployment numbers.

    “Likewise, previous economic studies, many based on Europe’s job market struggles, have shown that people who become disconnected from the work force have more trouble getting hired, probably because of some combination of stigma, discouragement and deterioration of their skills.

    This is one of the biggest challenges facing policy makers in the United States as they seek to address unemployment. Its underlying tenet — that time exacerbates the problem — means that the longer Congress squabbles about how to increase job growth, the more intractable the situation becomes. This, in turn, means Washington would need to pursue more aggressive (and, perversely, more politically difficult) job-creating policies in order to succeed. Even reaching an agreement over whether to extend benefits yet again has proved contentious.”

    The claim by these people to just give up and pray for Big Daddy Government to come in and save the day. Not once in this article does she claim that lowering taxes might help or cutting the huge spending Washington can’t seem to stop. This woman infuriates me to no end, to think our only hope is government. She has no faith in the people of her country and is assuming we are always going to have these high unemployment numbers as if there is no way for them to come down, that they are stuck at 9.8 forever. The only way it will ever move is up. I can’t go into the thoughts I have as to what should happen to this woman & about this article, we’ll just say it ain’t good!

  9. canary says:

    The connection of jobs & lack of jobs are all tied up with the on going “stimulus package money” being shoveled out. . It’s just once they announced the bridges for turtle crossings, people quit noticing. Some requirements are you must have been unemployment for 4 months then they will give you money as long as work for large government non-profit organizations get the work, and contract the work. It’s very complex. Anyone notice that Subaru will donate 250 dollars to you 1 of 4 charities (as in habitats for humanity) if you buy a 20,000 car from them. Who get’s the reward, or tax break. Remember when Obama wanted to stop giving tax breaks for your donations? This is very complex system going on in this country. I’m saying communism when you are forced to do volunteer work and community service, give to organizations not of your choice.

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