U.S. jobless rate hits 26-year high

WASHINGTON (Reuters) -

U.S. employers cut 345,000 jobs last month,( This comparing of employers cut number and the REAL JOBLESS CLAIMS NUMBER IS 631,250 FOR A FOUR WEEK PERIOD) the fewest since September and far less than forecast, according to a government report on Friday that was more evidence the economy's severe weakness was diminishing.

The media is making any all out effort to get the public to believe that the economy is getting better day by day. The ecomomy is not getting better, so don't believe it!

The Real Jobless Claims
Highlights
Jobless claims data show improvement, finally. Initial claims in the May 30 week fell 4,000 to 621,000 (prior week revised 2,000 higher to 625,000). The trend of the last two weeks is under the four-week average which is at 631,250. Continuing claims ended more than four months of uninterrupted weekly gains, down 15,000 in the May 23 week to 6.735 million. The unemployment rate for insured workers, which has been ticking consistently higher, held unchanged at 5.0 percent. Were it not for pending layoffs in the auto sector, today's report would have raised talk that labor contraction had reached its peak. The Labor Department will post the monthly employment report tomorrow with expectations looking for little to no improvement from April.

Market Consensus Before Announcement
Initial jobless claims eased in the May 23 week but the overall report points to a rising pool of unemployed. Initial claims came in at 623,000, down 13,000 from the prior week. But the alarming news in the report was a sizable 110,000 jump in continuing claims for the May 16 week. The gain was the 19th in a row and at 6.788 million sets another record high.