I make no apologizes for wanting to shore up the car companies last fall. I make no apologies for wanting to make sure a critical component to our national economy not be allowed to flounder and fail even further. Though Detroit has had many self-inflicted wounds the fact remains they are a major source of economic power in the economy. The news over the past weeks has not been good for car companies, and now all that is reflected in the jobless numbers for the country.
The number of U.S. workers filing new claims for jobless benefits rose more than expected last week, government data showed Thursday, pushed up by auto plant shutdowns related to Chrysler’s bankruptcy.
Initial claims for state unemployment insurance benefits increased 32,000 to a seasonally adjusted 637,000 in the week ended May 9, the Labor Department said, reversing an easing trend of the previous two weeks.
A Labor Department official said “a good part of the increase is due to automotive states and claims.”
The data, coming on the heels of a report showing a consumers were still reluctant to go out and shop, was another set back an economy trapped in recession since December 2007.
“I’m afraid a little Round-Up has been sprayed on the green shoots” of the recovery, said Lee Olver, fixed income strategist at SMH Capital in Houston, Texas.