Tyler Durden reports that as oil prices are plunging, jobless claims are spiking — mostly in big energy-producing states like Texas, North Dakota, and Colorado:
Not “unambiguously good” as Shale states see initial jobless claims spiking. Overall initial jobless claims missed expectations for the 4th week in a row, holding above 300k for the 3d week in a row (for the first time since July). At 307k, this week’s print is below last week’s but well above the 300k expectation. However, across TX, CO, ND, PA, and WV, initial claims (1 week lagged) rose to over 75k (from 30k in October)… “crisis has passed”?
Losses like these are supposed to come out in the wash, as money that had been going to the shale oil fields gets redirected to consumer spending. But we’re in uncharted waters here, as energy jobs are some of the few high-paying blue collar jobs left in this country.
I get the feeling the money we save at the pump will be going to buy cheap Chinese crap directly, instead of first going through the hands of an oil worker in North Dakota, but we’ll see.