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New jobless claims rise

By Sonja Ryst

Jobless claims rose unexpectedly in the last week of July to the highest level since April, contradicting an encouraging employment report Tuesday and underscoring concerns that high corporate profits are not generating jobs.

The Labor Department said 479,000 initial jobless claims were filed in the week ending July 31, or 19,000 more than the previous week's revised figure of 460,000. Economists had expected a slight drop in claims.

The four week moving average was 458,500, up 5,250 from the previous week's revised average of 453,250.

Doug Roberts, chief investment strategist at ChannelCapitalResearch.com, said government support for the job market has been tapering off recently, and questions remains about whether
private sector can fill in the gap.

"If there isn't a small business pick-up, the reports will be negative and you'll see continued increased joblessness," Roberts said.

The Labor Department's announcement appears to contradict the good news on Wednesday from the ADP National Employment Report, which said that private sector employment increased by 42,000 from June to July on a seasonally adjusted basis. It was the sixth consecutive monthly gain in private employment, but the six month increases averaged only
37,000 and showed no evidence of acceleration.

Gary Butler, CEO of ADP, said in a press release that continued weakness in the jobs market has been in part caused by uncertainty in the economy and the general business climate. "American businesses are on the cusp of recovery, but more effective incentives are needed to
encourage business investment resulting in the creation of more jobs," Butler said.

By Sonja Ryst  |  August 5, 2010; 10:23 AM ET
Categories:  Unemployment  
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Comments

Well, duh! This merely confirms the results of several studies showing that job outsourcing, while it undermines the overall economy of the country dumb or greedy enough to permit it, does not result in lower consumer prices. The excessive profits made, however, do create a cesspool of corruption, and a large concentrated group sense of entitlement - the political, Wall Street class. The problem is, they are like roaches or fleas, once n infestation breaks out and a population of the vermin is established, just how do you go about getting rid of them? And you have to get rid of them, because they carry diseases, bite and make you miserable, and, left unchecked, blindly breed to staggering levels. So, you fumigate, you kill them, you root them out of the dark corners they hide in, put chemicals on the carpeting under your feet, treat the family dog and cat, wash the bedding, and make certain that not even one remains alive.

Posted by: mibrooks27 | August 5, 2010 11:00 AM | Report abuse

Nobody, including me, is going to be hiring until we find out how bad taxes and Obama Care are going to affect the bottom line.

I hope that everyone who supported these folks enjoys being unemployed, because no one is going to be hiring once all these costs hit businesses.

Posted by: Alangc2 | August 5, 2010 11:14 AM | Report abuse

No surprise. Obama is killing the private sector of our economy with his polices.
The only thing he did with taxes this year so far is to allow the estate taxes to expire so that millionaires who died this year are exempt from taxes. It cost us about $25 billion of tax revenue. It was a gift to the wealthy. Why did he let that happen?
The NY Yankees owner who recently died would have had to pay $500 million in estate taxes if the law were renewed to what it will be next year. It is a very large oversight on the part of the Democrats and Obama. What else is new?

Posted by: nychap44 | August 5, 2010 11:49 AM | Report abuse

Talk of yesterday's report as encouraging seems to be spin from the happy talkers. The reality seems to be that there are essentially three different scenarios for our economy.
One is the 2003 scenario where we escape from employment problems and a sluggish economy by promoting some kind transitory economic boom. In spite of the historic disaster created by the 2003 instance of this scenario, a large group of happy talkers are straining at the leash to repeat past mistakes. Fortunately, so far the ecnomic data shows little sign of this scenario actually playing out.
The second scenario is another economic contraction in the near term. With the current state of the US and European financial systems and the fragile state of the US real economy, it is hard to rule this scenario out. But its arrival would be announced by some kind of currently unexpected set of events that are not visible in the current economic numbers.
The third scenario is some kind of progress towards a new normal pattern of sustainable economic growth. Of course this pattern would still display some cycles of up and down econmic ativity. But it would not have the disasterous volatility in our economic conditions that we have experienced since the late 1990's. This third scenario is the one to be hoped for. But, unfortunately, it has a number of negative consequences. One is relatively slow economic growth. Another is an unacceptable level of unemployment at least in the forseeable future. Another is acceptance of the reality that we will have to live with the decline in asset prices that resulted from the bursting of the last bubble. Yet another is likely to be some level of deflation at least in some parts of our economy. Nevertheless, this scenario is the only one that gives us a real chance to make progress correcting the structural problems in our economy and finding our way to a better economic future. So far, it seems to be the scenario that is playing out in the endless stream of economic data whatever the small blips are from sample to sample.

Posted by: Anonymous | August 5, 2010 11:50 AM | Report abuse

Wow! That Stimulas spending is doing a bang up job.

Posted by: jdonner2 | August 5, 2010 12:39 PM | Report abuse

Wow! That jdonner2 spelling is doing a bang up job.

Posted by: Anonymous | August 5, 2010 12:48 PM | Report abuse

The WP: "Jobless claims rose unexpectedly in the last week of July to the highest level since April"

Wow! It looks like Obama's "Summer of Recovery" is working so well. Thanks Obama! We can do it, yes we can!

Posted by: liberalsareblind | August 5, 2010 12:49 PM | Report abuse

Wow! That Stimuls spending is having its desired effect. The unemployment rate among government workers is just about zero. Why all of the belly aching from the private sector?

Posted by: jdonner2 | August 5, 2010 12:57 PM | Report abuse

WHERE ARE THE JOBS JOBS JOBS OBAMA?

STAY AT THE WHITE HOUSE AND WORK FOR A CHANGE, WILL YOU?

Posted by: COOLCHILLY | August 5, 2010 1:02 PM | Report abuse

Wow! That Stimulas spending is having its desired effect. The unemployment rate among government workers is just about zero. Why all of the belly aching from the private sector?

Posted by: jdonner2 | August 5, 2010 1:06 PM | Report abuse

When will we stop hearing "sustainable economic growth," when there is no such thing as sustainable economic growth?
That's what economic bubbles are made of and all bubbles burst.
Cut me a break will ya?
You'll see unacceptable unemployment for the next five years before it's figured out that the work force no longer needs people, only technology and the bottom line.

Posted by: rburns3 | August 5, 2010 1:08 PM | Report abuse

No worries: goobermint employees just got their $26 billion welfare sop.

You private sector employees: eat turds.

Posted by: ugottabkiddin | August 5, 2010 1:20 PM | Report abuse

ugottabkiddin - Uh, the poor wont be eating anything. The Democrat's paid for this blatant vote buy by cutting food stamps and other programs for the truly poor. It's exactly what a lot of us have been saying for quite some time - the government-Wall Street alliance is the enemy of this country and it's people.

Posted by: mibrooks27 | August 5, 2010 1:58 PM | Report abuse

That is 4.13 % increase!!!!! Why aren't these folks being hired by the Government Job Increase Program!! JIP -Huh!! Bammer - "Creator" please plunk your magic twanger!!

Posted by: Anonymous | August 5, 2010 2:18 PM | Report abuse

So much money given to the so broad ground of speculators, potential investors seeing no way for productive investments and guided by inmediate panic and fear. Financial bailout could work to save banks but it is unuseful at all to launch the neccesary quick recovery. Meanwhile a Fed wich status could be rated to near waste by any rating agency (out of the Earth of course. Militar power is still big enough). Direct stimulus to the core of the productive economy as a way of quick recovery to normality? Lost chance because laisez-fair believers and panicked taxpayers.

Posted by: Vercinget333 | August 5, 2010 2:21 PM | Report abuse

That is a 4.13 % increase!! Why aren't these folks be placed in positions created by the Bammer's Job Increase Program - "JIP" Huh?? Plunk your Magic Twanger Barry!!

Posted by: veritas7 | August 5, 2010 2:22 PM | Report abuse

That is a 4.13 % increase!! Why aren't these folks be placed in positions created by the Bammer's Job Increase Program - "JIP" Huh?? Plunk your Magic Twanger Barry!!

Posted by: veritas7 | August 5, 2010 2:27 PM | Report abuse

I guess there are no raises in social security because again we must pay the debt that the government made.

How come the government people wrote into law thet they will get their raises. When you figure inflation they should not get anything either.

We, the people who did not make this mess are supposed to clean it up.

If anyone is mad stay mad in November when it is time to vote. The money will flow before the election time to make you think they will do something for you. Do not be fooled.

I do not recall that Laura Bush went on all of these trips and where was the Mother of Michelle (hiding in the plane) I guess we must pay for anyone and they did say Obama would be alone for his birthday ogther than the dog. Well Michelle some people are alone for a lot of birthdays. After you signed the card on the computer and click submit then there was a page for donations. What a bummer.

Posted by: Anonymous | August 5, 2010 3:21 PM | Report abuse

Whooo !!! If you're a union employee or a school teacher or a government worker, you need not worry like the rest of us poor folk.
You're protected by "da man"!!!

Posted by: richard36 | August 5, 2010 3:55 PM | Report abuse

Stop asking Obama where the jobs have gone!

The present situation is just a single snapshot of a process that has been going forward for decades.

Going offshore saves huge amounts of overhead in labor and office space. India or China have consulting firms to engineer, research, and develop new products, so "American-based" companies don't have to deal with the demands of the domestic worker market.

The market belongs to the employers. We're not hurting for most types of worker and won't likely be for the foreseeable future.

As economist, Paul Krugman said, he's afraid this will become the new "normal" for the job market with standing unemployment hovering at 10%. He stated the government would define this condition as a "structural" problem.

Obama is the public face of government, but does anyone honestly believe he calls all or even most of the shots? If that was the case, then why are there some many damn lobbyists in Washington???

There are too many culprits to count and greed, not party lines is what defines them.

Posted by: veerle1 | August 5, 2010 4:32 PM | Report abuse

CHAIN BREAKS AT WEAKEST LINK

Before Globalization, the Stock Market represented a reliable leading economic indicator.

The Main Street U.S. economy suffers a depression feel where small business struggles to squeeze out a profit.

Relentless negative pressure persists in the housing market, foreclosures, joblessness, and the extraordinary deficits jeoprdize the entire economy.

Yet, major public NYSE corporations simply reduced costs, overhead, staff to skeleton dimensions in order to show eek what Wall Street refers to as “better than expected earnings.”

The players in the Stock Market - the wealthy, institutions and hedge funds bet on “better than expected earnings” but fail to factor in the falling knife top line sales revenue.

Seizing on this convoluted economic model, to support the Stock Market artificially, the U.S. Government has instituted an economic policy of near zero interest for banks and intentionally manipulated and devalued the dollar.

This act allows NYSE public corporations to keep the price of their products and services competitively cheap in order to stimulate export sales to foreign countries, and simultaneously, permits the U.S. Government to pay off U.S. debt with less valuable dollars.

Thus, the Stock Market paints an artificial portrait and growth illusion.

The intrigue behind this market manipulation intended to hype up the Stock Market to trigger growth in the Main Street U.S. economy.

The reality reveals these two economies are completed separated, disconnected, and thus, when the Main Street U.S. economy crashes further, only then will the Stock Market falter.

Consequently, in reality, the depressed Main Street U.S. economy has replaced the Stock Market as the leading indicator.

When this realization takes place or more aptly stated, when this market manipulation reveals itself, the U.S. economy will break at the weakest link in the chain, namely at the depressed Main Street U.S. economy. In simple terms, the bleak Main Street U.S. economy will become the leading economic indicator and the Stock Market will become the lagging economic indicator.

By then, no manner of Government near zero interest, dollar devaluation, further stimulus or other FED artificial means will alter the infamous outcome.

Severe, unveiled economic consequences are brewing in the U.S. while the Government and Wall Street spin masters tell us "we're heading in the right direction - all is well."

The U.S. Economy will break at the weakest link in the chain.

The Main Street U.S. Economy clearly represents the weakest link in the chain, and the most neglected in terms of U.S. Government monetary and fiscal policy. No Main Street businesses were bailed out. Foreclosures and bankruptcies not forgiven.

I see the Main Street U.S. Economy worth the equivalent to a DOW 6,000.

If I'm wrong then the Stock Market will continue to rise, (as the Main Street U.S. Economy falls further) and in that event, we will be faced with hyper inflat

Posted by: info96 | August 5, 2010 8:04 PM | Report abuse

"...unemployment will continue to rise until small business starts hiring again...".

Small business will not begin hiring again because they don't have the money to.

Posted by: bwshook1 | August 6, 2010 9:09 AM | Report abuse

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