U.S. Initial Jobless Claims Rose 17,000 to 551,000 in September 2009

October 1, 2009 by · Leave a Comment
Filed under: Economic News 

Can someone please explain to me what a “jobless recovery” is?  If these exist then Santa Claus and the Easter Bunny must be real.  Sure if you were fortunate to have income to apply in the stock market then you saw an “equity recovery” but using this language in the context of macr0-economics is misplaced in my opinion.

These “green shoots” we keep talking about must be weeds coming up.  At the time of this writing we are in the midst of a sellout on Wall Street, I agree with the consensus that is growing saying that we got ahead of ourselves with all the recovery and new bull market talk.  The real question is can earnings hold up and can the private sector start creating jobs?  Sure if we borrow money and use it for stimulus we will create jobs but what about when there is not government intervention, that is the real test to see if we are seeing an actual recovery.

Bloomberg, Washington D.C. – The number of Americans filing first-time claims for jobless benefits rose more than forecast last week, a sign companies are still cutting workers as the economy pulls out of the recession.

Applications rose by 17,000 to 551,000 in the week ended Sept. 26, from a revised 534,000 the week before, Labor Department data showed today in Washington. The total number of people collecting unemployment insurance fell in the prior week to 6.09 million, the least since April.

Monthly job losses have slowed as government stimulus measures spur production and consumer demand, helping to end the worst economic slump since the 1930s. The Labor Department may report tomorrow that the economy lost the fewest jobs in more than a year last month, while the unemployment rate kept rising, indicating a rebound in hiring will be gradual.

“The economy is on track for a jobless recovery, and unemployment will likely remain high well into next year,” said Sal Guatieri, a senior economist at BMO Capital Markets in Toronto. “We’re just not seeing a pickup in hiring. It means a long road to full recovery.”

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