Data on jobless claims doesn't compute for joblessness level

Looking on the bright side of the U.S. employment situation requires some creative statistical interpretation. The number of individuals filing for joblessness rose last week. However, the number was lower than analysts forecasted. Job creation and jobless claims have been canceling each other out, which is the reason why the U.S. joblessness level, at 9.6 percent most of the year, shows no signs of going down.

The unemployment forever unchanging

The Labor Department accounts that jobless claims went up 2,000 to 439,000 last week. According to the Associated Press, in three of the last four weeks there have been less people filing for unemployment than there have been in two years; it has merely been at the highest 440,000 max. There was an average 4.2 percent decrease in the last month as the average number of jobless claims went lower 16,000 to a 443,000 a week average. It means that fewer people are getting fired and more are getting employed. This is what AP suggests. Jobless claims have to go under 425,000 a week in order for the unemployment level to change. This is exactly what economists explain.

The jobless situation

Jobless claims come in by the thousands every single week. The week ending November 6, however, had 48,000 individuals stop collecting unemployment. That doesn’t necessarily mean they were given employed. Within the last week of October, 121,000 individuals moved to the federal unemployment extension program after joblessness benefits expired. Meanwhile, up to 2 million individuals will lose advantages when the emergency extensions expire at the end of Nov. In the next few months, another 2 million will supposedly lose advantages. It’s unlikely a lame-duck congress can be able to pass another federal joblessness extension.

Figures neglect to provide clarity

Weekly firings are closely viewed by economists. Jobless claims used to be able to show if the economic climate was recovering or not. There is no longer a relationship during this economic recovery though, Bloomberg accounts. Oct was the fourth month of more than 100,000 jobs being created since corporations added 159,000 jobs. You will find a ton of companies hiring. Most are lying off individuals though. Forty-two states and U.S. territories reported rising jobless claims, while 11 reported a decline. Just keep in mind that the unemployment level is staying the same. It won’t change from the 9.6 percent.

Citations

Associated Press

google.com/hostednews/ap/article/ALeqM5hog5HM6YtSPvQ1KRg8oIM4BznnEA?docId=4c61b3bcd52d492c8347b0c63629c446

Bloomberg

bloomberg.com/news/2010-11-18/jobless-claims-in-u-s-increased-less-than-estimated-to-439-000-last-week.html

Forbes

forbes.com/2010/11/18/jobless-data-retail-markets-equities-spending.html?boxes=marketschannelnews