Initial jobless claims dropped last week by a modest 6,000 to a seasonally adjusted total of 422,000. That’s a sign that the labor market isn’t poised to deteriorate further, but the still-elevated pace of new applications for unemployment benefits also suggests that job growth is still struggling. In one respect, we dodged a bullet–for now. But let’s be clear: nothing less than robust job growth will suffice to offset what looks to be a new summer slowdown in the offing. It’s still too early to talk about a new recession, but the risk is inching higher. That threat remains small, but the change in trend isn’t encouraging.
Daily Archives: June 2, 2011
Strategic Briefing | 6.2.2011 | U.S. Labor Market
Scary signs for jobs
CNNMoney | June 1
All eyes in the financial world are on the government’s monthly labor report due Friday, hoping to see that the job market continued to grow in May. But after several indicators pointed to a recent slowdown in job growth, the glass is now looking closer to empty than full. “You could call it a soft patch, but it’s the second or third soft patch we’ve seen in the recovery,” said Paul Ashworth, chief U.S. economist with Capital Economics. “For a recovery that is less than two years old, it’s troubling to say the least.”