Initial Jobless Claims Plunge to Jan 2006 Lows, Government Warns Of "Seasonal Volatility"

Tyler Durden's picture

So much for the idea of 'slack' in the economy, initial jobless claims just plunged 19k week-over-week to 284k (vs 307k expected) - the lowest since Jan 2006 (which was the lowest print since May 2000). This is the biggest beat of expectations in over 2 years. Continuing claims fell modestly. Let's not go popping the champagne corks of full recovery quite yet as non-seaonally-adjusted claims collapsed by their most in 6 months as the government saw fit to warn data-consumers that "claims are often very volatile this time of year," as auto shutdowns can cause claims to fluctuate. In other words, ignore this noise.

 

 

Great news... except...

  • *LABOR SAYS AUTO SHUTDOWNS CAN CAUSE CLAIMS TO FLUCTUATE
  • *LABOR SAYS CLAIMS ARE OFTEN VERY VOLATILE AT THIS TIME OF YEAR
  • *U.S. TOTAL BENEFIT ROLLS DECREASE BY 8,000 TO 2.5 MILLION