US Unemployment Claims Increase

Photo: nytimes

The Facts

  • New unemployment claims increased more than analysts expected for the week ending Oct 1., rising 29K to a seasonally adjusted 219K, according to the US Dept. of Labor. Economists had predicted 203K claims for that period.

  • Despite these statistics, the labor market has remained strong in the face of the Federal Reserve’s raising of its policy interest rate from almost zero percent into the 3-3.25% range.


The Spin

Democratic narrative

The Fed has gotten some of the desired job market results from its rate hikes. The economy isn’t in, nor does it seem headed for, a recession. There’s increased participation in the workforce, and demand for labor is nearly back to pre-COVID normal. This is good economic news for Biden and the Democrats ahead of the mid-terms.

Republican narrative

The US economy is a wreck, and there’s nothing the Fed can do to save it unless Biden and the Democrats stop their reckless spending. The nation needs a plan that cuts spending, increases domestic energy production, and provides tax and regulatory certainty for small businesses to avoid a dangerous recession.


Political split

LEFT

RIGHT

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