“Recovery Summer” crawls along
This morning’s job report was ugly:
The economy is looking bleaker as new applications for jobless benefits rose last week to the highest level in almost six months.
It’s a sign that hiring remains weak and employers may be going back to cutting their staffs. Analysts say the increase suggests companies won’t be adding enough workers in August to lower 9.5 percent unemployement rate.
First-time claims for jobless benefits edged up by 2,000 to a seasonally adjusted 484,000, the Labor Department said Thursday. That’s the highest total since February. Analysts had expected claims to fall.
Initial claims have now risen in three of the last four weeks and are close to their high point for the year of 490,000, reached in late January. The four-week average, which smooths volatility, soared by 14,250 to 473,500, also the highest since late February.
Claims fell steadily last year from their peak of 651,000, reached in March 2009. But they have mostly leveled out this year at or above 450,000. In a healthy economy with rapid hiring, claims usually drop below 400,000.
Seeing the endless stream of bad economic news over the past several months, and especially the weak jobs situation, I can’t help but think about the early days of the Obama administration, and their push for the
trillion dollar $800+ stimulus package.
Remember the boasts made by both the administration and congressional Democrats, about the number of shovel-ready jobs that were lined up, waiting for federal funding? And how those jobs would set in motion this miraculous economic recovery rooted in Keynesian economics? And how not one Republican representative voted for that monstrosity in the House?
The ball’s in the American people’s court this November–hold the politicians accountable for the lies.