Initial jobless claims unexpectedly jump to nine-month high

Los Angeles Times ^ | 03/05/2015 | By JIM PUZZANGHERA

[SeekAndFind]

Initial jobless claims unexpectedly jumped to a nine-month high last week, an indication that severe winter weather could be putting a temporary freeze on the labor market's recovery.

About 320,000 people filed for first-time unemployment benefits last week, up 7,000 from the previous week, the Labor Department said Thursday.

Economists had been expecting claims to fall to 300,000. Claims below that level indicate a strong labor market.

Private sector added 212,000 jobs last month, down from January, ADP says Private sector added 212,000 jobs last month, down from January, ADP says In another read on the jobs market, planned layoffs by U.S. businesses were down 5%, to 50,579, in February from the previous month, career counseling firm Challenger Gray & Christmas Inc. said Thursday.

But announced layoffs are running higher this year than last year, the firm said.

The weekly jobless claims figure can be volatile, but last week was the second straight jump and brought claims to their highest level since May.

The less-volatile four-week average rose by 10,250, to 304,750.

The recent upward trend probably was caused by bad winter weather, particularly in the eastern U.S., said Ian Shepherdson, chief economist at Pantheon Macroeconomics. Snowstorms can lead some businesses to temporarily lay off workers.

Claims have been running below 300,000 for most of the previous six months as job growth has picked up.

[SeekAndFind]

Yep, I suspect as much. It’s called the UNDERGROUND economy.

[piasa]

Anyone here surprised?

[piasa]

I used to think Pelosi looked startled all the time because of plastic surgery, but maybe I’m wrong, and Democrats are just stupid and easy to sneak up on?

[KC_Conspirator]

Over six effing years of “unexpected” bad economic news! I am getting sick and tired of treating the president as some affirmative action hire that the media tries to explain away his poor performance.

[circlecity]

"This time thy have the same excuse as the last time — IT’s THE WEATHER."

Yet a few years back when we had an unusually mild winter they blamed that for poor employment numbers. They said it was depressing the energy market.

[Shady]

Gnu Yak, despite Prince Andrew's psychotic rants to the contrary is hemmoriging jobs all over...Upstate is trashed..

[kearnyirish2]

Unemployment benefits are usually limited by what you (and your employer) have contributed, and the former employer contributes when someone is receiving them; at a former job management would reach out to people who were laid off during slow-downs and offer them their jobs back because if they refused the unemployment (to which the employer was contributing) would be cut off.

I don’t think that scam works well (or at least it wouldn’t here in NJ).

[kearnyirish2]

The underground economy is big in my area, as we devolve to the level of Red Chinese peasants; each morning I see many illegals, often riding bicycles, head out from their illegal (untaxed) apartments to work the jobs they took from Americans, working for cash (to pay their rent in cash). Banks have made it much easier for these invaders to send untaxed money “home” as well.

[lowbridge]

“And what is the Official Unemployment rate?”

Official? Oh, about 5 percent.

Unofficial? About 50 percent.

[stephenjohnbanker]

As always.

[CSM]

“unexpectedly”

Of course!

[pas]

But wasn’t it the warmest Feb on record?

[Buckeye McFrog]

and where in this great country is that?

Pittsburgh. Shale gas companies are shedding jobs.
Some combo of low prices and companies thrusting a pre-emtpive middle finger towards Gov. Wolf and his proposed drilling taxes.

[SeekAndFind]

RE: Gov. Wolf and his proposed drilling taxes.

Sheesh, these government types can’t help themselves. If it moves, TAX IT.

[smalltowngirl]

Here in Louisiana there are 1000’s of layoffs in the oilfield sector and more coming. These companies are in sheer panic mode right now.

[St_Thomas_Aquinas]

DRINK!

[fhayek]

I hold the belief that the ‘recovery’ is beginning to fade. We are about due for another recession.

[RayChuang88]

I'd almost agree with you, but try coming to work in one of the most brutal winters the upper Midwest and Northeast has ever seen. If the economy is really recovering, then expect hiring to pick up from around middle March 2015 on.

[Georgia Girl 2]

Gee I’m shocked. Especially since the 1st quarter GDP has just been revised to 1.2%. What a recovery.

[SeekAndFind]

CHART OF THE DAY: RECESSION AHEAD?

The chart below showing the annual increase, or rather, decrease in US factory orders which have now declined for 6 months in a row (so one can't blame either the west coast port strike or the weather) pretty much speaks for itself, and also which way the US "recovery" (whose GDP is about to crash to the 1.2% where the Atlanta Fed is modeling it, or even lower) is headed.

 

As the St Louis Fed so kindly reminds us, the two previous times US manufacturing orders declined at this rate on an unadjusted (or adjusted) basis, the US economy was already in a recession.

 

And now, time for consensus to be shocked once again when the Fed yanks the rug from under the feet of the rate-hike-istas.