New jobless claims unexpectedly plunge to 601K

[jefferson_dem]

New jobless claims unexpectedly plunge to 601K

New jobless claims unexpectedly plunge to 601,000; lowest level since January
Martin Crutsinger, AP Economics Writer
On Thursday May 7, 2009, 9:07 am EDT

WASHINGTON (AP) -- New applications for jobless benefits plunged to the lowest level in 14 weeks, a possible sign that the massive wave of layoffs has peaked. Still, the number of unemployed workers getting benefits climbed to a new record.

The Labor Department reported Thursday that the number newly laid off workers applying for benefits dropped to 601,000 last week. That was far better than the rise to 635,000 claims that economists expected.

But the total number of people receiving jobless benefits climbed to 6.35 million, a 14th straight record.

The four-week moving average of initial jobless claims, which smooths out volatility, totaled 623,500 last week, a decrease of more than 30,000 from the high in early April. Goldman Sachs economists have said a decline of 30,000 to 40,000 in the four-week average is needed to signal a peak.

<SNIP>

http://finance.yahoo.com/news/New-jobless-claims-apf-15164532.html/print

[jefferson_dem]

1. Consider this headline with Sludge's, which links to the same report -

"NUMBER OF UNEMPLOYED GETTING BENEFITS CLIMBS TO RECORD"

[CoffeeCat]

3. Drudge's headline is better...

I'm really tired of the MSM twisting every bad bit of news into a rainbow wrapped in silver linings.

It's important to note that jobless claims did fall from their monthly peak. It's also important to
note that the number of unemployed getting benefits is a record (as Drudge said).

What's odd, is how the MSM positions every bit of bad news in a wonderful light, "Oh, we're so lucky...this
is not as bad as expected!"

Just stop editorializing and trying to hide reality--and report the facts.

[Hamlette]

5. while the number is a record, we are no where near the top in terms of %

it is a record for the number getting benefits because the population is bigger but that is a deceptive number.

Whether it is the MSM or something else, good news raises all ships. I don't want false hope or optimism but excessive doom and gloom (as Drudge would want it to be) could be far worse.

[Zynx]

6. Actually, historically speaking the direction of new claims is far more important.

Continuing claims are universally a lagging indicator. It doesn't mean people aren't hurting, but it tells you nothing about where we are going.

Initial claims are still high, but if the most recent direction continues and we get down to the mid-500,000s per week in the next month, that correlates very strongly with the beginnings of economic recovery.

[Beetwasher]

10. And The Stimulus Projects Are JUST Getting Started

All those jobs have not even begun to hit yet.

I really think we've seen the bottom.

[DrToast]

13. It's not better. Here's why

The number of new people filing for unemployment is a leading indicator. It tells you where the economy is going.

The number of people collecting unemployment benefits is lagging. It tells you nothing about the direction of the economy.

Edit: Doh! Zynx said the same thing.

[quiller4]

17. Drudge's headline is deceptive. The number of individuals

receiving benefits is a records but the percentage of workers in the economy receiving benefits is nowhere near previous records. Drudge is the one editorializing.

[Clio the Leo]

2. The GOP is so screwed. NT

[RUMMYisFROSTED]

4. "I don't think 'plunge' means what you think it means."

[Life Long Dem]

7. What happened to simply stating "unemployment dropped"?

They probably also unexpectedly saw the increase in commuter traffic as well.

[Zynx]

8. Aggregate unemployment will continue to increase for some time at this rate, however

what this means is that unemployment is growing at a slower rate than it had been.

[JVS]

12. It's reserved for when that actually happens.

Unemployment didn't drop, it just increased by less than expected

[leftofthedial]

9. "plunge" ?

LOL

:rofl:

the propaganda is becoming more desperate and more laughable.

[JVS]

11. Wow! Let the good times roll!

:sarcasm:

[Occam Bandage]

14. It's still a positive sign. The acceleration is on our side, if the speed isn't yet. nt

[democrattotheend]

15. That's good news. Surprised the markets don't like it

Usually when economic news is better than expected the markets jump. But the DOW is down about 80 points right now. I wonder why.

[Political Heretic]

18. Market's don't rise on employement, they rise on layoffs. Because:

It's a sign that companies are reducing costs and thus can make more profits. Employment is an expense that effects bottom line. :)

I shit you not.

[windbreeze]

16. How can this or how Drudge said it, actually indicate anything

anywhere near truthful??

The fact is, the unemployment numbers are always false, no matter if you prefer to see the glass half empty or half full..because those who fell off the rolls, due to entirely exhausting their benefits, are not even counted, yet they are still every bit as unemployed...

Everyone needs to read that article and digest what it does say...how about 6.35 million people receiving benefits...6.35 MILLION PEOPLE....that the laid off are NOT finding new jobs...that there's a loss in productivity, maybe not as high as they expected(and doesn't a loss in productivity mean loss of jobs?)...but still high enough for concern....and the difference in unemployment now vs one year ago, is about DOUBLE...and that any spending, done in April, was done because people received their income tax refunds....(a one time a year thing).....

So tell me, what happens when the 6.35 million run out of benefits...??? Do we think there will be a miracle and there will be jobs out there to re-employ them???(I figure that's the real problem) and then how about the new ones facing unemployment right now...like the 21,000+ at Chrysler, or the 2,000 here, or the 300 there??...that aren't even on the rolls yet...IMO...recovery of any sort, IF it happens, IS gonna be in the distant future for sure...but I hope to hell I am wrong...wb