The number of U.S. workers who filed new applications for jobless benefits jumped 35,000 last week to 445,000, the highest level in more than two months, as a government official attributed the sharp increase largely to administrative backlogs.Still, the sharp rise in new claims, which had fallen steadily since last summer, is likely to put investors on guard following a disappointing December employment report last week.
I'm always suspicious of the "administrative backlog" claim. However, we'll have to wait and see next weeks number to know for sure.
4 comments:
New claims for unemployment benefits statistics are suspect at this time of the year. During the Holiday season claims go down because there are only four days in the business week. Also, in the last couple of years, state offices have processed less claims in the last week of December as they run out of funding and have to wait for new funding in January. Thus, claims usually take a big jump in the first week of January. Next week's number will probably be a better indication.
The next 3-4 initial claims reports will be very important as any seasonal adjustments should be fading away and we will see where we truly are.
I have one friend who got laid off yesterday because her employer went under. My sister works for a major upstate New York hospital and tells me that, last week, they just had 30 mid-level management layoffs whom they informed unexpectedly and then immediately escorted off the property for security reasons, albeit with decent severance packages. And my local Long Island school district announced three weeks ago the layoff next school year of over 80 employees including 30 teachers.
I believe today's Jobless Claims numbers.
Looks like we have the BLS backlog assertion vs Jimdotz' on the ground reporting. Who will be right?
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