New U.S. claims for unemployment benefits unexpectedly climbed to a nine-month high last week, yet another setback to the frail economic recovery.
Initial claims for state unemployment benefits increased 12,000 to a seasonally adjusted 500,000 in the week ended August 14, the highest since mid-November, the Labor Department said on Thursday.
Analysts polled by Reuters had forecast claims slipping to 476,000 from the previously reported 484,000 the prior week, which was revised up to 488,000 in Thursday's report.
A Labor Department official said there was nothing unusual in the state level data. The data covered the survey week for the government's closely watched employment report for August, scheduled for release early next month.
"There are some technical factors out there and the seasonal factors seem to be pushing it up a little bit. But given the trend of claims it looks like the economy ran into a wall in August," said Chris Rupkey, chief financial economist at Bank of Tokyo-MitsubishI UFJ in New York.
The wall is Obamanomics.
Let me explain this in a way that even the dumbest of liberal, media types can understand.
When things get more expensive, you buy less of it. Let's make up a name and call it "The Law of Supply and Demand".
For you liberals let's use this as an example. Assume Starbucks doubles the price of the Grande Double Crapocino. Will you buy more or less of the product?
The same hold true for employees. So when we make the cost of labor more expensive by passing laws like health care, minimum wage hikes, and Lilly Ledbetter Act ,companies have this tendency to hold back from hiring. Especially when they're pretty sure the regulatory landscape is only going to get worse.
So when American companies start laying off American workers because the costs get too high, it should be no surprise to anyone but, in fact, highly expected.