To put this in perspective, a couple of years into recovery, we should be seeing 250,000 to 300,000 new jobs per month. We're not there yet.

The basic message is unambiguous -- you've got inflation.

The jobless claims are a leading indicator. We would like to see it lead back down.

It's the 'Red Queen effect' -- you've got to run twice as fast just to stay in place.

I don't think we're going to see jobs collapse or disappear. There is a bit of fear in the air with what's been going on with oil prices and the hurricane that there's going to be some kind of collapse. But I think this economy is resilient.

It will temporarily depress some economic activity, in much the same way a snowstorm could.