July 8, 2010
A Dow Jones news report issued today, July 8, started with the words “In a hopeful sign for the labor market, the number of U.S. workers filing new claims for unemployment benefits fell last week by more than analysts expected.” That is a totally misleading statement. New claims dropped into the 400,000 to 500,000 range in the week of November 21, 2009. The number has never dropped below 433,000 claims in any week since then. So while the latest number is less than the previous week, what is hopeful about new claims of 454,000?
July 2, 2010
The unpleasant reality is that new job claims are continuing at a rate that will cause more people to vote for Republican representatives to the Congress and Senate. The following graph demonstrates the unending recession. Click the graph to see a better view. It’s not a pretty picture.
Both congressional Republicans and Democrats don’t seem to get it. The United States is in serious economic trouble. While the monthly unemployment report seems to be improving there really has not been an improvement in this economy.
Look at these quotes from Businessweek magazine.
The improvement in jobless claims in the U.S., however, has stalled above the 400,000 mark, including today’s surprisingly weak report.
Yet, claims since then are stuck in a range of 440,000 to 490,000 this year. Today, the government said claims rose to 472,000 in the week ended June 26.
“To get the unemployment rate going down you need 200,000 plus jb growth,” said Mark Zandi, chief economist with Moody’s Analytics in West Chester, Pennsylvania. “If that doesn’t happen by the end of the year, then this will go down as another jobless recovery.”
This week’s employment report may move the U.S. further away from hitting Zandi’s job growth target.
If payrolls grow an average of 100,000 a month, Bloomberg calculations show, it would take six years for the U.S. to return to the peak in employment of 138 million people set in December 2007.
From Bloomberg.com Almost a year ago, economic strategist Dan Greenhaus of Miller Tabak & Co. in New York told his clients the U.S. economy would recover while job growth would be scarce.
His prediction for a so-called jobless recovery, derided by some clients when he made the forecast last July, may be coming true.
From the United States BLS: In June, the number of long-term unemployed (those jobless for 27 weeks and over) was unchanged at 6.8 million. These individuals made up 45.5 percent of unemployed persons.
The graph shown here really speaks louder than words. It is provided by the U.S. Department of Labor.
My question is what is congress doing? Unless I have missed something the answer is NOTHING!
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