Wednesday, November 25, 2009

Did New Claims for Unemployment Insurance Really Drop Sharply?

Yes, and No.

Here's the link to the Dept. of Labor press release.

Unadjusted, claims rose week on week.

Per the data, hiring is anemic. Much of the labor force problem is that more experienced workers are in greater need than young ones who need training.

A guess from yours truly, a certified non-economist, who further provides this guess for free: unemployment this cycle is worse than is suggested by what the Labor Dept. is measuring. Small businesses are struggling; and youth is greatly underemployed.

On the other hand, the theme is that massive government intervention has begun bleeding into the real economy. Absent all this intervention, it would appear that the gloomy views from almost a year ago about 2009 from Nouriel Roubini were spot on.

Copyright (C) Long Lake LLC 2009

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