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Lindsey Piegza, FTN Financial economist, weighs in on today’s jobless claims data and the economic recovery.
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The latest weekly jobless numbers rising slightly this week so is it just proof that.
The cock American job growth continues to be lackluster in this country have what does -- mean for the overall economy would joining us now -- FT and financial economist Lindsay PX a Lindsay once again thank you for being here.
Okay we know it was like -- and not really ho hum but but what is are there any positives in this latest report.
In the forest report we did see a slight increase in jobless claims -- -- four week average up to a three week high but really the underlying takeaways that once -- Parse out that temporary volatility.
Due to hurricane sandy we've really find ourselves.
Pretty much unchanged from where -- -- -- before that super storm hit so -- no change in the labor market were still just kind of bumping along.
And we heard recently that small business confidence is still ridiculously low they're not hiring so where's the job growth gonna come from.
One that's part of the problem because right now the Fed continues to have this very accommodative policy -- -- place.
But they continue to pass along the baton to the federal government saying now it's your job to put pro growth pro business policies in place.
In order to a really green events via the investor class the business class and -- to grow that higher.
But we've also have from a number of companies were very just stay into the new year.
About more stop reductions mean that must be a consent.
It certainly is because right now what we're seeing as more and more companies moving full time employees to part time employees.
In order to rein in those costs still keep those employees on the payrolls.
But reducing those hours reducing it was a franchise scene when the of when he's in Nebraska and we may see moral this bringing those -- down so they don't have to pay for the employees senate health -- horrible businesses are still very much struggling -- -- -- -- recovery is very -- three years into the recovery.
We should be talking about 456%.
Growth but we're not we're still very much -- range bound at 2% because a lot of it has to do -- most of -- I should say has to do with.
Washington so -- -- lack of direction and now we're up against this debt ceiling.
We we.
We don't have a budget don't play that out for us what happens to the economy during all that well what we do -- we continue to see this overhang of uncertainty and we already saw those effects in the quarters leading up to the fiscal -- negotiations.
Now what we've done is really kick the can down the road for another three months saying okay we can hold on -- but that does not reinstate confidence for small business says.
Nor does it re -- that incentive again to get that capital into the market to grow businesses and create -- On the flip side of that Lindsay once they do get their act together and that's you know -- a -- if -- -- mostly -- -- takes away a lot of the uncertainty.
Could we then see a rule rush to hire and expand.
I don't we'll see a rush to -- I think in the long term we will once we start to see a more sustainable recovery in but certainly we're starting to see budgets already become more balance on the state level.
And there is talk about leading to -- -- now little skeptical that we are going to actually see that in the short term as most most of those budget surpluses.
Have already been allocated to really cover shortfalls are cover expected rising cost -- typically surrounding Medicaid.
Yeah but interesting though that you're saying the states are seeing more revenue Saddam collecting more taxes sure will we continue to see that are we gonna see -- -- -- -- exodus from those high tax states we could see it.
Out again in the long run in the short run I think people are gonna sit that out but we are starting to see a little better this recovery on the state level.
Revenues are set to increase about 4%.
So right there were starting to see those budgets come in line but there still are a lot of holes.
As we saw a lot of programs specifically pensions under funded in those years following the Great Recession yet and I begins to deceive the exodus especially from yes.
States like cars mean no Connecticut and Jersey California live in now -- are certainly small businesses relocated again absolutely syndicate Atlantic -- thanks so my name's Lindsay.
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