News outlets are buzzing regarding the recent jobless claim drop. With projected numbers higher than actuality, modest progress is still progress!
While the week ending September 17 jobless claim was 469,000, projections for last week were lower. Bloomberg, according to consensus, reported anticipated initial jobless claims would total 459,000. However, the U.S. Labor Department was pleasantly surprised when the number of new jobless claims dropped 16,000 to 453,000.
In midsummer, claims an unfortunate high of 500,000. The recent drop has brought claims to same level as the beginning of the year. However, the economy is expanding at a slow 1.7% annualized pace.
“We are beginning to think the labor market has dodged a bullet,” saidchief economist Ian Shepherdson of High Frequency Economics. “Conditions remain truly awful, but they could have been even worse.”
The drop in jobless claims is a step in the right direction toward recovery. A great example is the DOW jump at opening today. The jump could be a reflection of the jobless drop, as well as, brighter times to come. However, it is going to be a long process for full recovery.
According to Daily Finance, "New jobless claims need to drop below 400,000 during the next two quarters to give economists and investors confidence that commercial activity is increasing at a pace that will prompt companies to curtail layoffs and resume hiring."
While the week ending September 17 jobless claim was 469,000, projections for last week were lower. Bloomberg, according to consensus, reported anticipated initial jobless claims would total 459,000. However, the U.S. Labor Department was pleasantly surprised when the number of new jobless claims dropped 16,000 to 453,000.
In midsummer, claims an unfortunate high of 500,000. The recent drop has brought claims to same level as the beginning of the year. However, the economy is expanding at a slow 1.7% annualized pace.
“We are beginning to think the labor market has dodged a bullet,” saidchief economist Ian Shepherdson of High Frequency Economics. “Conditions remain truly awful, but they could have been even worse.”
The drop in jobless claims is a step in the right direction toward recovery. A great example is the DOW jump at opening today. The jump could be a reflection of the jobless drop, as well as, brighter times to come. However, it is going to be a long process for full recovery.
According to Daily Finance, "New jobless claims need to drop below 400,000 during the next two quarters to give economists and investors confidence that commercial activity is increasing at a pace that will prompt companies to curtail layoffs and resume hiring."
For a little background on jobless claims, it is used to gauge the status of the job market through weekly reports regarding how many people have filed for unemployment benefits the previous week. The report is published every Thursday.
To look the last week's report, click here.
To look the last week's report, click here.
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