Report deals setback to hopes economy on the verge of job growth
WASHINGTON - The number of newly laid-off workers filing applications for unemployment benefits unexpectedly surged last week after having fallen sharply in the previous week. The gain dampened hopes about how quickly the labor market may improve this year.
The Labor Department said Thursday that first-time claims for unemployment benefits rose by 31,000 to a seasonally adjusted 473,000.
The increase followed a drop of 41,000 in the previous week which had raised hopes that the labor market, which has lost 8.4 million jobs since the recession began in December 2007, could be improving.
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6 comments:
Nothing is improving in real time.
Obama is giving the money to the WRONG people. If they put it where people could have reduced their mortgages down to the current market price things would start churning again. As long as we owe more than what it's worth we are in a deadlock.
Amen brother...
For all of readers . . .even when the jobless claim numbers begin to fall . . .do not be deceived into believing that we are in a recovery as I try to explain.
You see there are a finite number of employed workers in this Country. Eventually, the numbers have to fall as the State and Federal unemployment benefits run out and the recipients fall out of the system.
Bottom line - you will eventually see the number of jobless claim numbers fall. But this is going to represent a false indicator because the 'real unemployed' workers are not being being counted as they have fallen 'out of the system'. Thus, the jobless claim numbers will be distorted and it will be a false indicator that we are coming out of recession.
However, the politicos in office will be touting that the Stimulus is working when, in fact, they are misleading.
Yeah, I believe you are right. Even if we heard the jobless claim numbers to fall, it was only to let people believe that the economy is recovering but the truth is not.
So goes the housing/building industry....so goes the economy. All the mortgage relief programs created to allow people to stay in their homes have been a complete utter failure. Today's paper noted that approx. 12% of the applications for modification have been approved while the percentage of foreclosures have hit all time highs. With what they've wasted from TARP...we could have paid down the outstanding balances to todays current values and the housing industry would at least be at ground zero. As it is we aren't even close and we lose more ground each and every month. The economy can't begin to improve until we hit bottom.....and that's not on the radar yet.
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