The number of new people who found themselves without a job in the month of July, the Jobless Claims Change figure, is expected to increase from that of the previous month’s figure for the first time since February. Indeed, since the second month of the year, the rate of job losses had been easing. This most recent period may indeed actually prove to be as detrimental as the general concensus would have one believe. In the four months following and including March, expectations for job losses were overly pesimistic. But much of these estimation errors came off of an inflation variable which proved to be stubbornly higher than economists anticipated. Last month, however, the CPI figure matched that which was expected and actually fell from that of the period prior. An easing of inflationary pressures during the month prior might actually be implying the jobs have been shedding.
