Thursday, October 29, 2009

Initial Jobless Claims Fell by 1,000 to 530,000; Jobless Benefits Plunged 148,000 to 5.8 Million.

Initial jobless claims fell by 1,000 to 530,000, a smaller drop than predicted by analysts. The total number of people receiving jobless benefits plunged 148,000 to 5.8 million. That's the lowest number of total claims since March, and the biggest weekly drop since July.

Source: Investors


The jobless claims disappointed somewhat with the small marginal drop in weekly claims. However the continuing claims dropped nicely to 5.8 Million. This however maybe due to a larger then expected drop in people's benefits expiring.

Looking ahead next week is the monthly jobs report. This may rise to 9.9%. So even with the better then expected GDP numbers, employment continues to be a lagging indicator of improvement.

The United States continues to add debt to get itself out of this recession, with the auto clunker program, and the first time home buyers tax incentive, without these consumer offers growth would have continued to remain tepid.

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