Topic: Unemployment Claims

A critique of jobless claims reporting by Krystal Ball and Saagar Enjeti notes their surprise at rising numbers, which the hosts argue is a logical result of renewed lockdowns in states like California. The episode concludes with a reminder of the value-for-value model and a preview of the upcoming Thursday show.

The US Postal Service is reported to be keeping thousands of idle employees in "resource rooms" or "holding pens" because union contracts prevent layoffs despite a 15% drop in mail volume. This practice is framed as a way for the Obama administration to keep unemployment numbers from rising while the agency seeks a $7 billion taxpayer bailout.

The official U.S. unemployment rate of 9.5% is challenged by the U6 data, which provides a more comprehensive measure of labor underutilization. The U6 figure, which includes discouraged workers and those in involuntary part-time positions, has reached 16.5%. This level of economic distress is compared to the Great Depression, which saw peak unemployment between 25% and 33%.