« | »

‘Shutdown’ Made Jobless Claims Decline – Again

From the Associated Press:

Fewer Americans seek unemployment aid for 3rd week

By CHRISTOPHER S. RUGABER | October 31, 2013

WASHINGTON (AP) — The number of Americans applying for unemployment benefits fell 10,000 last week to a seasonally adjusted 340,000, a sign that employers are laying off very few workers…

We are talking about the second week of October. Which would be the second week of the apocalyptic (17%) government shutdown that we were told would throw 800,000 government workers and untold government contractors out of their jobs. And yet new claims went down by 10,000?

And bear in mind that many of these furloughed workers applied for, and got, and will get to keep, unemployment. So how is this possible?

Applications are a proxy for layoffs. They have fallen for three straight weeks and are just above the pre-recession levels reached in August…

So jobless claims have dropped since the first week of September and the first two weeks of October. Which was the height of shutdown fever. — Maybe we should do more government shutdowns. They seem to do more for the job market than any stimulus.

But, all of a sudden, the AP realizes they had better change their tune:

Fewer applications are typically followed by more job gains. But hiring has slowed in recent months, rather than accelerated... Hiring likely weakened even further in October because of the shutdown, which ended on Oct. 16. In addition to government contractors, other companies also likely cut jobs, such as restaurants and hotels located near national parks, which were closed.

But none of those people applied for unemployment, apparently.

Some economists are forecasting that job gains in October could be 100,000 or less…

Even though the first two weeks of October had lower claims for unemployment benefits?

Usually the AP predicts very rosy job gains. But not here, not if they can blame the shutdown and the Republicans.

This article was posted by Steve on Thursday, October 31st, 2013. Comments are currently closed.

3 Responses to “‘Shutdown’ Made Jobless Claims Decline – Again”

  1. GetBackJack says:

    I suppose because even the Statisticians took some time off.

  2. mr_bill says:

    They’ve been predicting the same thing for the last 5 years. You’d think they might get tired of re-writing the same bogus prediction and constantly being wrong. “Prosperity is just around the next corner, we promise, really, this time…what is ‘credibility?'”

  3. canary says:

    Fox reported it was due to all the holiday seasons. Noticed shoppers for Halloween is going big this year.
    All that kiddie free bad tasting school food and the price of candy real high no doubt to some fine system for making it.

« Front Page | To Top
« | »