JOBLESS CLAIMS UP AGAIN – AT 8:59 A.M. ET:  The much-anticipated weekly jobs claims report has just been issued.  It is not good news for the White House.  From Bloomberg: 

More Americans than forecast applied for unemployment insurance payments last week, another sign the labor market is struggling to improve.

Claims for jobless benefits unexpectedly climbed by 6,000 to 386,000 in the week ended June 9 from a revised 380,000 the prior week that was more than first estimated, Labor Department figures showed today in Washington. Economists projected claims would fall to 375,000, according to the median estimate in a Bloomberg News survey.

A pickup in dismissals may raise concern the labor market will have trouble rebounding after a slowdown in job creation in the past four months. Weaker economic growth and a lack of clarity about the business environment may discourage companies from hiring at a pace needed to speed up the expansion.

“This is a bit of a notch-shift higher with jobless claims,” said Bricklin Dwyer, an economist at BNP Paribas in New York. “We’ve seen some disappointing employment reports in May. The labor market is just kind of mediocre right now, not gaining much traction.”

COMMENT:  The claims number is moving once again toward the 400,000 mark, widely recognized as a serious danger sign.  The next anticipated report, to be issued later this month, will deal with job creation.  Last month's job creation number – 69,000 – was devastating. 

Are we in a new recession?  That will be the question that commentators will ask.  The fact that it is being asked at all is politically toxic for the president.  We're told that Mr. Obama is about to make a new "jobs" speech, but that he will not announce any new policies.  Then what will he talk about?  His record?

Republicans cannot be complacent, though.  Some polls suggest that the public doubts both parties when it comes to the economy.  Romney must outline exactly what he will do to reverse the current disaster.

June 14, 2012