Thursday, August 11, 2011

Jobless Claims Back Under 400,000; Keynesians Off, Again

The number of people who put in initial applications for unemployment benefits fell below 400,000 last week for the first time since early April, according to the Bureau of Labor Statistics.

While the level of claims is still elevated, applications for jobless benefits have trended downward since hitting a recent peak of 478,000 at the end of April.

Meanwhile, the Labor Department also said the number of people who continued to receive state unemployment checks decreased by 60,000, to 3.69 million, in the week of July 30. Continuing claims are reported with a one-week lag.

A total of 7.48 million people received some kind of government benefit in the week ended July 23, including 3.7 million longtime unemployed who get extra federal benefits. That was down nearly 90,000 from the prior week.

Bottom line: The employment indicators are a lagging indicator, but they continue to show improvement. Recent money supply growth is having the impact that one would expect at this point. The mad Keynesian econometric forecasters who simply trend out the latest number are way off. Economists surveyed by MarketWatch had expected new applications to rise to 410,000 in the week ended Aug. 6.  You could replace the "forecasters" with a kid who has a straight edge ruler.

1 comment:

  1. Who exactly are these forcasters? Who exactly are these economists? The sheepl,e are just being duped.