Jobless Claims Improve Again
Posted by Jason Apollo Voss on Aug 12, 2011 in Blog | 0 comments
Amidst the filth and the fury of stock market rises and falls this week economic data have kept chugging away. Yesterday the Department of Labor reported that initial jobless claims data have improved again, falling by 7,000 this week to a level of 395,000 claims. Economists had expected 400,000 new unemployment claims to be filed.
Analysis: It is economic gospel that jobless claims below 400,000 indicate positive net, new job creation in the economy. So any figure below that critical threshold is considered a plus.
However, initial jobless claims are just barely on the good side of things. What’s more, the financial market chaos of this week, the lack of resolution to the debt crisis, and the lack of a coherent economic policy on the part of the Obama Administration is likely to temper hiring in the short-term.
Businesses, just like consumers, like stability and consistency before they are willing to invest; whether that investing is in new equipment or new people. What I am saying is that the upcoming weeks worth of initial jobless claims numbers will be more telling about the direction of unemployment and the economy.
Importance grade: 8; any figure below 395,000 is important, but given the environment in which this data was posted, it cannot be overly relied upon.
Jason
