Reuters headline: 'New Jobless Claims Unexpectedly Rise'

Rick Moran
When will bad economic news be "expected?"

The number of Americans filing new claims for unemployment aid unexpectedly edged higher last week, stoking fears of a stalled economic recovery even as a separate report showed record U.S. exports in April.

Initial claims for state jobless benefits increased 1,000 to 427,000, the Labor Department said. However, economists polled by Reuters had forecast claims dropping to 415,000 from a previously reported count of 422,000.

The rise kept first-time claims perched above the 400,000 mark for the ninth week in a row. Analysts normally associate a level below that with steady job growth.

"It's the same dismal trend continuing. It's not getting worse, but it's not getting better either," said Keith Hembre, chief economist at Nuveen Asset Management in Minneapolis.

Fueling concerns about job creation, the U.S. government said on Friday the U.S. unemployment rate ticked up to 9.1 percent in May while nonfarm employers added a paltry 54,000 workers to their payrolls.

Hembre said the unemployment rate could rise to 9.2 percent in the June report. That would add to President Barack Obama's political woes heading into the 2012 race for the White House.

Actually, it's only partly Reuters fault. They rely on economists and analysts to set a benchmark of what is "expected" for a wide variety of indicators. When the numbers come in below the "expected" indicator, it is obviously "unexpected."

Maybe the media should start looking for different experts. To be so consistently wrong makes them useless.


When will bad economic news be "expected?"

The number of Americans filing new claims for unemployment aid unexpectedly edged higher last week, stoking fears of a stalled economic recovery even as a separate report showed record U.S. exports in April.

Initial claims for state jobless benefits increased 1,000 to 427,000, the Labor Department said. However, economists polled by Reuters had forecast claims dropping to 415,000 from a previously reported count of 422,000.

The rise kept first-time claims perched above the 400,000 mark for the ninth week in a row. Analysts normally associate a level below that with steady job growth.

"It's the same dismal trend continuing. It's not getting worse, but it's not getting better either," said Keith Hembre, chief economist at Nuveen Asset Management in Minneapolis.

Fueling concerns about job creation, the U.S. government said on Friday the U.S. unemployment rate ticked up to 9.1 percent in May while nonfarm employers added a paltry 54,000 workers to their payrolls.

Hembre said the unemployment rate could rise to 9.2 percent in the June report. That would add to President Barack Obama's political woes heading into the 2012 race for the White House.

Actually, it's only partly Reuters fault. They rely on economists and analysts to set a benchmark of what is "expected" for a wide variety of indicators. When the numbers come in below the "expected" indicator, it is obviously "unexpected."

Maybe the media should start looking for different experts. To be so consistently wrong makes them useless.