Posted on 06/02/2011 6:45:45 AM PDT by SeekAndFind
New claims for unemployment benefits fell last week, but not enough to assuage fears the labor market recovery has taken a step back.
Initial claims for state unemployment benefits slipped 6,000 to a seasonally adjusted 422,000, the Labor Department said on Thursday, less than economists' expectations for a fall to 415,000.
The claims report falls outside the survey period for the government's closely watched data on nonfarm payrolls for May.
The government is expected to report on Friday that employers hired 150,000 last month, according to a Reuters survey, after increasing payrolls by 244,000 in April.
"Every indication we have had so far points to a slightly softer labor market in the U.S.," said Camilla Sutton, chief currency strategist at Scotia Capital in Toronto.
U.S. stock index futures held gains after the data, while U.S. bond prices extended losses. The dollar also extended losses against the euro.
There is a risk that May payrolls could come in below consensus after ADP, a payroll service company, reported private employers added only 38,000 last month, the smallest number since September.
However ADP has a poor track record at predicting nonfarm payrolls.
In a second report, the Labor Department said nonfarm productivity grew at a slightly faster 1.8 percent annual rate in the first quarter, rather than the 1.6 percent previously reported. Productivity was still slower than the 2.9 percent pace set in the fourth quarter.
Wage growth remained muted, with unit labor costs rising at a 0.7 percent rate rather than the previously estimated 1 percent rate. Unit labor costs dropped at a 2.8 percent rate in the fourth quarter.
(Excerpt) Read more at reuters.com ...
Unexpected!
That would be unexpected, yes?
The 422K print will be adjusted upward next week, as it is every week. Last week’s original report was 424K - revised upward to 428K, so that the Bureau of Lying Statistics can make things look not-quite-so-awful.
Recovery Summer III
“Labor market recovery takes a step back”. What recovery are they talking about?
I have been looking at this weekly jobless claims numbers for the longest time... WE HAVE NOT FALLED BELOW 400,000 at all.
Also when the number is closing in on 400,000 and threatens to dip below, inevitably.. THEY WOULD REVISE IT UPWARDS LATER.
If we switched the drinking game word from 'unexpected' to 'recovery', everyone would be unconscious within minutes.
they can spin whatever they want about the unemployment rate
Tax revenues (federal state local and sales) don’t lie
People who don’t collect chccks, who don’t have incomes, don’t spend and don’t pay taxes. So that is why obama thinks he can make it up by taxing “the rich” (working people) even more.
Help! Our economy has fallen and it can’t get up!
You left out one very important group. The underground economy....those who pay and recieve cash for goods and services as well as those who barter goods and services.....all completely (for now) off the radar. This includes professionals as well as tradesmen, laborers and flea market buyers and sellers. The underground economy is huge and the gov't. has been loath to address it for quite some time, but I think that is about to change and there will be some interesting times once the gov't. attempts to curb it.
recieve S/B receive...i before e except after c...
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