Initial Claims Miss For Second Week In A Row As Nonfarm Productivity Tumbles Most Since 2008

Tyler Durden's picture

As is the case every Thursday, the BLS reported its weekly initial claims which unlike two weeks ago did not estimate the initial unemployment claims for America's most populous state when the number plunged, and has now missed expectations for two weeks in a row, printing at 366K, on expectations of a 360K number, while last week's 368K was as usual revised upward to 371K. As a result, the Mainspin Media already has its headline: Initial Claims decline by 5,000. Such is life under the US Department of Truth, even as unadjusted initial claims spiked by 16.7K to 386K in the week ended February 2. In other news, people on Extended Unemployment Comp plunged by 288K after soaring in the week prior, and making some wonder just what is going on with the EUC 2008 data series for it to get such massive weekly shifts each week.

But perhaps, more importantly, the BLS also reported Q4 unit labor costs and nonfarm productivity and as a result of the previously reported adjustments to worker data and negative GDP print, it was widely expected that productivity would drop. It did, but it did so far more than most expected, plunging by a whopping 2%, which "reflects increases of 0.1 percent in output and 2.2 percent in hours worked. (All quarterly percent changes in this release are seasonally adjusted annual rates." The offset: unit labor cost which soared by 4.5% in the fourth quarter of 2012, the combined effect of the 2.0 percent decrease in  productivity and a 2.4 percent increase in hourly compensation. Unit labor costs rose 1.9 percent over the last four quarters.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
JP McManus's picture

Obviously, moar QE is the answer.

GetZeeGold's picture



Hey.......DOW 14K.......not bad huh?

ArkansasAngie's picture

When dealing with imaginary numbers in the excel sheet in the sky ... anything is possible.

Rubber hits the road?  Not with crimnals skimming and hiding their crimes in phony books.


GolfHatesMe's picture

Jobless claims will eclipse the labor force number before that happens

Zap Powerz's picture


Why work at all when the fed can just print all the money we need to run the government?  The fed should just send everyone a million bucks a year to "stimulate the economy".  No one has to show up for work, we can all just go spend money in stores where no one is working.  Oh, wait....

But seriously, if the fed can just print money and create wealth with ctrl + P why do we have to annoy ourselves with work?

natronic's picture

Nobody will when the value of the $ falls to 0.

boogerbently's picture

Can't we compare/contrast the unemployment/welfare/disability numbers to the govt. CRAP BLS figures?

TruthInSunshine's picture

Classified Memo To CIA Nominee-Director

Subject:  Truth Tellers Termination Program (aka 'Paint An American Citizen Red, Then White, Then Blue' Program)

To:         Nominee-Director of Al-CIA-Duh, Johnny McBrennan

From:      President Barack "I AM Due Process, Bitch" Obama

              Hellfire Missile Equipped Domestic Drone Fleet Commandeer-In-Chief

Nominee-Director McBrennan,

Please keep foremost in mind the two critical pieces of wisdom that Jean-Claude Juncker & Mariano Rajoy have recently reminded the world's dis-intelligence units of when speaking, testifying or otherwise opening one's mouth, when you appear before CONgress today for your Kabuki Dance:

  • "When it becomes serious, you have to lie."
  • It is all untrue, except for some things.


President Barack "Judge, Jury & EXECUTIONER" Obama

cc:  The Hon. Jon S. Corzine

trav777's picture

there's 50T of z1 credit they have to fund, so yeah

UE right now is dependent on who they classify as actually unemployed

yogibear's picture

Ivory tower syndrome for the PhDs at the Federal Reserve.

The Bernanke and the Fed members keep looking at the unemployment numbers with people rolling off thinking it's getting better and their policy is working. 

Fantasyland for the Fed. USA has become Japan.

Debasing the dollar, causing the middle class and poor to suck it in.


Woodyg's picture

Considering 90+% of all new income goes to the top 1% I'd say QE is working Exactly as planned.

The financial coup detat continues victorously!

Let them eat Ipads!

BandGap's picture

I think they gave the BLS dartboard an extra heavy duty spin this week.

Blah, blah, blah....

Shell Game's picture

Waiting for it to be renamed the Politburo of Labor Statistics.....  same BS, just not accessible in the gulag.

LawsofPhysics's picture

Time for the CBs to buy some more bonds.  suckers.

Winston of Oceania's picture

Ouch that's going to leave a mark...

Stoploss's picture


apberusdisvet's picture

As long as the sheeple keep drinking the Koolaid, everything is just hunkey dorey.  Is there a 12 step program for Koolaid withdrawal?

pods's picture

I cannot wait to see them actually write that the UE rate dropped to 10.1% from 9.9% and see if they get it by everyone.

Orwell was a prophet.


Mi Naem's picture

For some, it will be a 12 gauge program. 

johnnynaps's picture

Weren't 10,000 boomers supposed to be retiring daily by now?

GolfHatesMe's picture

Retirement is now in a McDonalds until they automate to dodge the Health care act

GrinandBearit's picture

Good news or bad news, the algos have everything under control.

Sudden Debt's picture

Bernanke saw a BUBBLE in productivity



IridiumRebel's picture

Shitheaddad O'Brien didn't report this on Communist News Network.....Why isn't the state media covering these interesting numbers......FUCKING, HMMMM.

Silverhog's picture

The endless spin is wearing me out. Hope I don't become a mindless CNBC Zombie soon.

IridiumRebel's picture

Look into the are getting weak and wanting to buy.....

GrinandBearit's picture

It's all designed to wear you out.

Sudden Debt's picture

In the end, watching the same TITS bore you out and you'll look for other tits...

so in the meanwhile... you'll have to ride out your cnbc wedding...

youngman's picture

"Unit labor costs rose 1.9 percent over the last four quarters"......this is weird especially when you have 7.8% unemployment and 15% undereemployed...with all that potential labor available I would think ( old school econ 101) that labor costs should be going down.......OR...the bit cap letters this Obamacare kicking in???????

insanelysane's picture

Me thinks the rise in labor costs were actually related to bonus type pay prior to the fiscal cliff.

Yes_Questions's picture



I was thinking the same thing.  I know no middle wage earner whose pay went up, but instead are working more with the same or less even.  Mgmt smiling, doing the same or less with more.



BandGap's picture

We need a Biderman moment.

scatterbrains's picture

yah niggas up in Europe  needs to brent over and enjoy some of this Bernak wood he sportin.. how's it feel bitchezz ?

fonzannoon's picture

How bad is David Einhorn getting his ass kicked with apple to be doing this huge dog and pony show right now?


insanelysane's picture

BSberg is having an exclusive interview with him at 10.  Super exclusive since CNBS had him on before 9.

yogibear's picture

Hp on it way to having huge layoffs as well as another telecom company again this year.

yogibear's picture

Hp on it way to having huge layoffs as well as another telecom company again this year.

Mike in GA's picture

The lying shills of the msm are sickening.  The lack of any journalistic search for objectivity is embarassing.  The press was once the pit bull at the ankles of the they're the toy poodle in their pockets - fed treats and trotted out for propaganda purposes only.

Oh yeah, and coverups for the 'progressives' (Menendez, etc) and public damnation and vilification of their opponents.


The Gooch's picture




madbraz's picture

Good to hear finally some comments on the absurdity of the EUC 2008 figures.


It's been clear for a while that the weekly claims number has been adulterated for quite some time now.  Most likely they just pass on new claims directly to the continuing claims bucket, bypassing the new claims.  This would explain why extended benefits are such a statistical monstruosity.


Note how unadjusted new claims went up last week and the adjusted number went down.  That didn't happen last year, nor the years before.   They just don't care anymore about having it make any sense and imply that it is statistically valid, as long as the HFT get their trigger.


The MSM started the effort this morning to get away with no sequester - it was on NPR at 6AM and on CNBC at 8AM.  Not coincidentally, the CNBC headline was that Robert Rubin said the sequester is terrible.  Rubin created MSM manipulation 101 (perfected by Summers) and taught the Europeans how to do it via Turbo Timmy.  Recall that Rubin is in a hedge fund.  


Robert Rubin is terrible.  These guys (Summers) have Obama on a string.  I think this is not a coincidence - they created him and put him where he is now.  No wonder Obama dare not go against the bankers, even in his last term - something holds him back.  They have him by the balls - should he ever go against him, he's exposed.

mr1963's picture

That's what "he" said, "Barry, I got you by the balls."

Hmmm, wonder what they have on the limp wristed leader of the free world...

insanelysane's picture

BO is going to need a new job in 4 years and the only industry still standing will be the banksters.

LongSoupLine's picture

Fuck you BLS. Motherfucking Obama shit eating fucking assholes.

You crooked fucks can burn in fucking Hell. Fuckers.

krispkritter's picture

You haven't had one fucking post without a 'fuck' in it in a long fucking time.  Must be some kind of fucking record. Keep up the great fucking work! 

1000yrdstare's picture

The MSM should be right on this!!

Dogbert's picture

At this point what matter does it make?

CheapBastard's picture
9-year-old gives birth, Mexican authorities seek 17-year-old father



Coming to a city near you.