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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.

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Thu, 02/07/2013 - 09:48 | 3222653 JP McManus
JP McManus's picture

Obviously, moar QE is the answer.

Thu, 02/07/2013 - 09:51 | 3222671 GetZeeGold
GetZeeGold's picture



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

Thu, 02/07/2013 - 09:59 | 3222683 ArkansasAngie
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.


Thu, 02/07/2013 - 10:00 | 3222707 spastic_colon
spastic_colon's picture

6.5% here we come!  NOT!

Thu, 02/07/2013 - 10:13 | 3222741 GolfHatesMe
GolfHatesMe's picture

Jobless claims will eclipse the labor force number before that happens

Thu, 02/07/2013 - 11:24 | 3222929 Zap Powerz
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?

Thu, 02/07/2013 - 11:27 | 3222949 natronic
natronic's picture

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

Thu, 02/07/2013 - 13:42 | 3223405 boogerbently
boogerbently's picture

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

Thu, 02/07/2013 - 10:36 | 3222775 TruthInSunshine
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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

Thu, 02/07/2013 - 09:54 | 3222682 trav777
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

Thu, 02/07/2013 - 10:03 | 3222715 yogibear
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.


Thu, 02/07/2013 - 12:29 | 3223197 Woodyg
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!

Thu, 02/07/2013 - 09:49 | 3222661 unrulian
unrulian's picture


Thu, 02/07/2013 - 09:53 | 3222680 BandGap
BandGap's picture

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

Blah, blah, blah....

Thu, 02/07/2013 - 09:57 | 3222693 Shell Game
Shell Game's picture

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

Thu, 02/07/2013 - 09:49 | 3222662 LawsofPhysics
LawsofPhysics's picture

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

Thu, 02/07/2013 - 09:49 | 3222663 Winston of Oceania
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Ouch that's going to leave a mark...

Thu, 02/07/2013 - 09:50 | 3222668 Stoploss
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Thu, 02/07/2013 - 09:51 | 3222670 apberusdisvet
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As long as the sheeple keep drinking the Koolaid, everything is just hunkey dorey.  Is there a 12 step program for Koolaid withdrawal?

Thu, 02/07/2013 - 10:06 | 3222720 pods
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.


Thu, 02/07/2013 - 15:31 | 3223816 Mi Naem
Mi Naem's picture

For some, it will be a 12 gauge program. 

Thu, 02/07/2013 - 09:51 | 3222672 johnnynaps
johnnynaps's picture

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

Thu, 02/07/2013 - 10:15 | 3222749 GolfHatesMe
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Retirement is now in a McDonalds until they automate to dodge the Health care act

Thu, 02/07/2013 - 09:52 | 3222673 GrinandBearit
GrinandBearit's picture

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

Thu, 02/07/2013 - 09:52 | 3222674 Sudden Debt
Sudden Debt's picture

Bernanke saw a BUBBLE in productivity



Thu, 02/07/2013 - 09:54 | 3222679 IridiumRebel
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.

Thu, 02/07/2013 - 09:54 | 3222681 Silverhog
Silverhog's picture

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

Thu, 02/07/2013 - 09:55 | 3222686 IridiumRebel
IridiumRebel's picture

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

Thu, 02/07/2013 - 09:55 | 3222687 GrinandBearit
GrinandBearit's picture

It's all designed to wear you out.

Thu, 02/07/2013 - 10:09 | 3222730 Sudden Debt
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...

Thu, 02/07/2013 - 09:54 | 3222684 youngman
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 OR...is this Obamacare kicking in???????

Thu, 02/07/2013 - 09:59 | 3222702 insanelysane
insanelysane's picture

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

Thu, 02/07/2013 - 10:33 | 3222796 Yes_Questions
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.



Thu, 02/07/2013 - 09:55 | 3222685 BandGap
BandGap's picture

We need a Biderman moment.

Thu, 02/07/2013 - 09:56 | 3222690 scatterbrains
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 ?

Thu, 02/07/2013 - 09:58 | 3222696 fonzannoon
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?


Thu, 02/07/2013 - 10:05 | 3222718 insanelysane
insanelysane's picture

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

Thu, 02/07/2013 - 09:59 | 3222699 yogibear
yogibear's picture

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

Thu, 02/07/2013 - 09:59 | 3222700 yogibear
yogibear's picture

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

Thu, 02/07/2013 - 09:59 | 3222703 Mike in GA
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 powerful...now 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.


Thu, 02/07/2013 - 11:23 | 3222923 The Gooch
The Gooch's picture




Thu, 02/07/2013 - 09:59 | 3222704 madbraz
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.

Thu, 02/07/2013 - 10:02 | 3222712 mr1963
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...

Thu, 02/07/2013 - 10:07 | 3222725 insanelysane
insanelysane's picture

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

Thu, 02/07/2013 - 10:03 | 3222713 LongSoupLine
LongSoupLine's picture

Fuck you BLS. Motherfucking Obama shit eating fucking assholes.

You crooked fucks can burn in fucking Hell. Fuckers.

Thu, 02/07/2013 - 10:06 | 3222721 Joe Davola
Joe Davola's picture

You forgot:


Thu, 02/07/2013 - 10:09 | 3222729 krispkritter
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! 

Thu, 02/07/2013 - 10:14 | 3222746 1000yrdstare
1000yrdstare's picture

The MSM should be right on this!!

Thu, 02/07/2013 - 10:25 | 3222780 Dogbert
Dogbert's picture

At this point what matter does it make?

Thu, 02/07/2013 - 10:27 | 3222784 CheapBastard
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9-year-old gives birth, Mexican authorities seek 17-year-old father






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