Jobless claims going nowhere fast

April saw a sizable increase in nonfarm payrolls, business and consumer spending is picking up and manufacturing is expanding at a fast clip, but you would never know that the recovery is gaining momentum by looking at weekly jobless claims.

Weekly claims unexpectedly jumped 25,000 in the latest week to 471,000, and the 4-week moving average rose 3,000 to 453,500.



An expanding economy and rising employment should be reflected by a growing confidence among businesses and a reluctance to fire workers. But the setback in the latest week suggests otherwise.

Yes, we are well below the peak of early 2009, but the lack of progress suggests employment growth will be mild in May.