JOBLESS CLAIMS 4-WEEK AVERAGE WORST SINCE HURRICANE KATRINA

While many "news" organizations will no doubt be blasting the headline "JOBLESS CLAIMS FALL", responsible ones will be leading with "4-WEEK JOBLESS CLAIMS AVERAGE WORST SINCE HURRICANE KATRINA SPIKE".

From USA Today:

The Labor Department reported Thursday that the number of new jobless claims dropped by 9,000 last week to a total of 349,000, but analysts noted that claims offices in California were open for only four days last week because of a state holiday.

The four-week average for claims, which gives a better picture of labor market trends, rose to 360,500. That was the highest level since claims spiked in October 2005 in the aftermath of Hurricane Katrina.

Analysts said the rise in the four-week average was depicting a labor market that is coming under increasing strains because of the slowing economy.

The economy shed 17,000 jobs in January, the first monthly job loss in more than four years. Analysts believe that the unemployment rate, which currently stands at 4.9%, will rise to 6% before the current slowdown has run its course.