Good news and bad news. Jobless claims fell to "only" 601,000 last week, but the revised numbers actually meant that last week's continuing claims rose instead of fell, meaning 19 straight weeks of rising continuing claims. We're up to 6.82 million now. The people getting cut aren't finding new jobs.
Employers are running out of jobs to cut at this stage. The easy job eliminations have been made. Those employees left are having to pick up the workload for in many cases less pay and with fewer benefits.
What we're seeing now are the difficult job cuts as employers have to decide how close to the bone they can cut things without losing entire departments, divisions, and yes, companies. Something will have to give soon.
The happy-face media is calling this signs of recovery. I call it the capitulation before the dam breaks.
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