Unemployment Data Masks Jump In Claims
Here is an Article I found on the Business Insiders website yesterday: http://read.bi/b0Tlqo
CHART OF THE DAY: Today’s ‘Good’ Unemployment Data Masked A Huge Jump In Emergency Claims
Vincent Fernando, CFA, Aug. 26, 2010,
Here’s why today’s jobless claims data wasn’t quite as good as the headline number made it out to be. Yes, initial jobless claims for the week ending August 21st were 473,000, which was lower than consensus had forecast, and below the 500,000 level broken one week ago. Continuing unemployment claims also shrunk.
But…
The latest report described a 200,000 jump in people seeking emergency unemployment extensions (Emergency Unemployment Compensation, EUC*), for the week ending August 7th, which is the latest data. As shown by a chart from Waverly Advisors below, emergency unemployment claims have shot up markedly as percentage of the workforce.
Waverly Advisors:
The number of claimants under all emergency extensions for the week ending August 7th expanded by 200k to 4.9 million. In context, the total receiving benefit extensions is now back over 3% of the civilian work force and at the highest level since April.
*Emergency Unemployment Compensation is provided as a temporary Federal extension for the unemployed who have already used up their regular state benefits.
Read more: http://www.businessinsider.com/chart-of-the-day-claims-under-state-programs-2010-8#ixzz0xqGtTLmj
5 Responses to “Unemployment Data Masks Jump In Claims”
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Great!!!! More people my capital gains tax gets to pay for!!! Hey Jeff, send a copy of your program to the U S government…..I’m sure they could use the advise.
Hi Jeff, I loaded up on SPX put options, as recommended. My timing is always bad as I bought them Tuesday morning, just before the rally started. Now I’m down a lot on them. Oh well, I picked up gains on all my long positions.
Al Coven
Kenny, thanks for the comment! Very funny…
Hi Al,
Thanks for the comment. Remember, the content I released was on using put options as insurance in case of a drastic move… not primarily for income. Way to take action to get protected.
Jeff
It’s amazing how gullible the market is when it comes to statistics that are kept by the government. But, you gotta go with the trend – so even though the market should be tanking, right now we are in a bull rally of some kind.