More Good News:Jobless Claims Drop


Mark Ralston | AFP | Getty Images
Unemployed Americans attend a National Career Fair

Jobless Claims Slide, Import Prices Rise, Trade Gap Up

Weekly jobless claims fell to their lowest level in four years, while the U.S. trade deficit widened and import prices rose more than expected, according to economic numbers released Thursday.

The number of Americans seeking unemployment aid plummeted to 339,000 last week, the lowest level in more than four years. The sharp drop offered a hopeful sign that the job market could pick up.

The Labor Department said weekly applications fell by 30,000 to the lowest level since February 2008. The four-week average, a less volatile measure, dropped by 11,500 to 364,000, a six-month low.

Applications are a proxy for layoffs. When they consistently drop below 375,000, it suggests that hiring is strong enough to lower the unemployment rate.

A Labor Department spokesman cautioned that the weekly applications can be volatile, particularly at the start of a quarter. And the spokesman said one large state accounted for much of the decline. The spokesman did not name the state.

“Thus, throw out the number and we’ll try again next week,” said Peter Boockvar, managing director at Miller Tabak in New York.

The decline adds to other evidence that hiring is improving. Last week’s jobs report showed the unemployment rate fell to 7.8 percent, the first time it has fallen below 8 percent since January 2009.

Read more…http://www.cnbc.com/id/49371146

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s