New Jobless Claims Jump in Last Week of 2004
by Adam Hughes*, 1/6/2005
The Department of Labor reported today a suprising jump in new unemployment claims. For the last week in December, jobless claims rose by 43,000 to 364,000, the highest level since mid-September.
While unemployment claims tend to be more volitle around the holiday season, the four-week moving average for claims, which is more stable, also rose to 333,000.
The continuing surprising unemployment claims increases and disappointing job creation results continue to cast doubt on claims by the Bush administration that the 2001 and 2003 tax cuts are moving the economy forward and will eventually create move jobs.
Analysts predict the economy will add 175,000 jobs in December - slightly more than needed to to keep up with population growth - but it is certainly possible that number may not be met. The Labor Department will release December job numbers tomorrow.
