If you are a Project Runway fan like I am, then you’ll understand this reference: “One minute you’re in…the next minute, you’re out.” Well, this same reference can apply to the recent unemployment numbers. One week, the rates are down, and the next, the jobless claims soar despite the good news from the week before.
Last week, I urged caution with the decreasing unemployment numbers saying that these numbers did not account for those who have thrown in the towel with their job searches and that the rising fuel prices were going to soon become a contributing factor. This week, there is news from Bloomberg that jobless claims are up once again.
Applications for first-time unemployment benefits increased by 26,000 to 397,000 in the week ended March 5, Labor Department figures showed today. Economists forecast claims would climb to 376,000, according to the median estimate in a Bloomberg News survey.
The same survey also mentions that the figures do not account for those receiving emergency or extended unemployment benefits, which could continue to boost these numbers higher.
Like I said in a previous post, we must remain skeptical about any news of unemployment rates dropping. The numbers are not truly accurate, especially if you count for economically depressed areas of our country still experiencing rising unemployment.
