Today’s jobless claims came in at 351,000. This looks like a drop from the 353,000 earlier; however, last week it was 351,000 then they had to admit it was 353,000 in the revision. Of course, it makes this week’s look like a drop in claims, when actually it isn’t. Look for a revision of this number next Thursday.
Personal income was up .3% and spending in January came in at .2% which was about half of what our analysts expected.
A number came out yesterday that shocked Zerohedge blog:
A month ago, Zero Hedge readers were stunned to learn that unemployment among Europe’s young adults has exploded as a result of the European financial crisis, and peaking anywhere between 46% in the case of Greece all they way to 51% for Spain. Which makes us wonder what the reaction will be to the discovery that when it comes to young adults (18-24) in the US, the employment rate is just barely above half, or 54%, which just happens to be the lowest in 64 years, and 7% worse than when Obama took office promising a whole lot of change 3 years ago.
And while technically this means 46% are unemployed, or the same percentage as in Greece, the US ratio, which comes from Pew, shows the ratio as a % of the total population: a very sensitive topic now that every month we see another 250,000 drop off mysteriously from the total labor force. However, unlike those on the trailing age end, young adults by definition are the labor force in their age group demographic, so it would be difficult to explain away this horrendous number by claiming that ever more 24 year olds are retiring. Although, yes, we agree that some may be dropping out of the labor force in order to go to college, incidentally the locus of the latest credit bubble, where they meet a fate worse even than secular unemployment: they become debt slaves of the Federal System, with non-dischargable debt at that, which even assuming they can get a job would take ages to pay back!
But wait: there’s more – of all age groups, this is the one that has actually seen its wages drop the most under the Obama administration.
So not only are they unemployed, young adults are at least poor.
Net result: double the change, zero the hope.