Weekly first-time jobless claims rose yet again last week, and the 4-week moving average has now risen for three straight weeks. This was “unexpected” for analysts, but not unexpected for anyone who understands that the root cause of our economic problems has yet to be addressed.
The number of workers filing new applications for jobless benefits unexpectedly rose last week, according to a government report on Thursday that pointed to a labor market still under stress even as the economy grows.Initial claims for state unemployment benefits increased 8,000 to a seasonally adjusted 480,000 in the week ended January 30, the Labor Department said.
Analysts polled by Reuters had forecast claims falling to 460,000 from a previously reported 470,000.
The much-ballyhooed recovery (the rise in GDP being the only evidence) is an illusion and the economy is quickly sinking back into recession. (Although, if economists were honest, they’d admit that it never ended.)