JOB SHOCK – AT 10:27 A.M. ET:  There was some guardedly good news on jobs last week, but things seem to have slipped back.  This wasn't expected:

WASHINGTON (AP) -- The number of newly laid-off workers seeking unemployment benefits rose last week, a sign that jobs remain scarce even as the economy recovers.

The Labor Department said Thursday that first-time claims increased by 18,000 in the week ending April 3, to a seasonally adjusted 460,000. That's worse than economists' estimates of a drop to 435,000, according to a survey by Thomson Reuters.

The report covers the week that includes the Easter holiday, and a Labor Department analyst said seasonal adjustment for Easter can be difficult since the holiday occurs in different weeks each year.

California also closed its state offices for a holiday March 31, the analyst said, which likely held down the claims figures. On an unadjusted basis, claims rose by 6,500 to nearly 415,000.

Economists closely watch unemployment claims, which are seen as a gauge of layoffs and a measure of companies' willingness to hire new workers.

The four week average, which smooths volatility, rose to 450,250. Two weeks ago, the average fell to its lowest level since September 2008, when Lehman Brothers collapsed and the financial crisis intensified.

Jobless claims peaked during the recession at 651,000 in late March 2009.

COMMENT:  If this can't be turned around in the seven months before the midterms, Democrats will take a bath.  We'll supply the soap.  And maybe bubbles too.

April 8, 2010