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Reuters: Jobless Claims ‘Rebound’ Up By 34,000

From a despondent Reuters:

Jobless claims signal tepid labor market

By Lucia Mutikani | Thursday, July 19, 2012

WASHINGTON (Reuters) – The number of Americans filing new claims for unemployment benefits rebounded last week, returning to levels consistent with only modest job growth after a seasonal quirk caused a sharp drop the prior period.

Notice the use of “rebound” here. Doesn’t that almost make it sound like things are getting better? Whoever heard of using the word “rebound” to describe things getting worse?

Initial claims for state unemployment benefits increased 34,000 to a seasonally adjusted 386,000, the Labor Department said on Thursday. Claims had dropped by 24,000 in the prior week and a combined 36,000 over the previous two weeks

For the record, last week’s number was revised up by 2,000. Which means that they have now been revised up now for 26 weeks in a row. And 71 of the last 72 weeks.

Claims data is volatile in July because of the timing of the annual auto plant shutdowns for retooling.

Automakers have not embarked on wholesale plant shutdowns this year, throwing off the model the department uses to smooth the data for typical seasonal patterns.

An official with the department said it was still experiencing volatility related to the auto layoffs that usually happen at this time of year

So why even make ‘seasonal adjustments’ if you are still going to be blindsided by annual ‘seasonal quirks’?

That is a rhetorical question. The seasonal adjustment is really just the government’s way of avoiding reporting the real life figures.

This article was posted by Steve on Thursday, July 19th, 2012. Comments are currently closed.

3 Responses to “Reuters: Jobless Claims ‘Rebound’ Up By 34,000”

  1. AcornsRNutz says:

    So if I read this right, the very same seasonal factor that allowed them to dismiss 91,000 claims as having never happened AFTER they did in fact already happen, is also what can be blamed for the claims number going UP the next week and potentially the next few weeks. Hmm.

  2. Right of the People says:

    I wish I could get a job writing fiction for the government.

  3. GetBackJack says:


    Someone pencil whipped some numbers and voila!

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