The Facts
New unemployment claims increased more than analysts expected for the week ending Oct 1., rising 29K to a seasonally adjusted 219K, according to the US Dept. of Labor. Economists had predicted 203K claims for that period.
Despite these statistics, the labor market has remained strong in the face of the Federal Reserve’s raising of its policy interest rate from almost zero percent into the 3-3.25% range.
The Spin
Democratic narrative
The Fed has gotten some of the desired job market results from its rate hikes. The economy isn’t in, nor does it seem headed for, a recession. There’s increased participation in the workforce, and demand for labor is nearly back to pre-COVID normal. This is good economic news for Biden and the Democrats ahead of the mid-terms.
Republican narrative
The US economy is a wreck, and there’s nothing the Fed can do to save it unless Biden and the Democrats stop their reckless spending. The nation needs a plan that cuts spending, increases domestic energy production, and provides tax and regulatory certainty for small businesses to avoid a dangerous recession.
