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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsJobless claims move in the wrong direction
By Steve Benen
While the general trend on initial unemployment claims over the last few months has been largely encouraging, there have been occasional setbacks. Today's new report is the most discouraging in a while.
Indeed, while last week's initial estimate was the best report in four years, the new figures are some of the worst of the year to date.
The average of new claims over the past four weeks, meanwhile, rose by a smaller 4,250 to 368,500, the highest level in a month. The monthly average is seen as a more accurate gauge of labor-market trends because it reduces seasonal volatility in the weekly data.
In terms of metrics, when jobless claims fall below the 400,000 threshold, it's considered evidence of an improving jobs landscape, and when the number drops below 370,000, it suggests jobs are actually being created rather quickly. The new figure of 380,000, though skewed a bit by temporary spring-break-related shifts, is the highest since January.
And with that, here's the chart -- which reflects the revised, seasonably-adjusted data -- showing weekly, initial unemployment claims going back to the beginning of 2007. (Remember, unlike the monthly jobs chart, a lower number is good news.) For context, I've added an arrow to show the point at which President Obama's Recovery Act began spending money.
http://maddowblog.msnbc.msn.com/_news/2012/04/12/11160126-jobless-claims-move-in-the-wrong-direction
DrStool
(2 posts)The advance number for actual claims is down by 66,154 or 14.7% since last year. The total number of claims will be revised up next week, so that in the end the difference will be closer to 60,000 or something on the order of 14%. There are many reasons for the drop and you can find negative arguments, such as that fewer workers are eligible to file claims (not true), but the fact is that far fewer people are losing jobs this year. New claims this week as were 0.29% (29 hundredths of a percent) of current total nonfarm payrolls. In the same week last year they were 0.34% (34 hundredths of a percent). So the decline in claims is not a matter of fewer people being eligible. A smaller percentage of the eligible are filing claims. Fewer people are losing jobs.
http://wallstreetexaminer.com/2012/04/12/just-how-bad-is-this-weeks-unemployment-claims-data-not-bad-at-all/