Today the government reported that initial claims for unemployment fell by an unexpectedly large 27,000 to 365,000. The trouble is, we don’t really know what this means. More discouraged workers may be dropping out of the labor force and some states are cutting back jobless benefits. Challenger, Gray & Christmas said that jobs cuts rose 7.1 percent last month 40,599, up 11.2 percent from last April. According to the Economic Policy Institute, the state jobs picture, while still mostly positive, indicates slowing. Also, continuing government job cuts are disproportionately hurting women and minorities.
The more interesting report came from the Institute for Supply Management, whose index of the vast service sector fell much more than expected, to 53.5 in April, down from 56 in March and the lowest since November. Bloomberg notes, “Expansion among service industries may be moderating after a surge in the first quarter that coincided with the strongest pace of job growth in six years.”
The political ramifications of even slower growth aren’t as important as the continued misery for millions of Americans.
And Don’t Miss: What happens when oil becomes unaffordable? || The Globe & Mail
Today’s Econ Haiku:
Our China choices
Human rights or cheap iPads
And debt for our wars