Today’s weekly Jobless Claims rose 15,000 to 381,000. This was above expectations for a smaller rise to 372,000 from last week’s upwardly revised 366K. However, the 4-week average fell 5,750 to 375,000, making it the best reading of the year and the best reading since the economic recovery began.
The 4-week average (which smooths out the volatility from week to week) has been steadily improving, falling in eight of the last nine weeks.
Ending the year in the sub-400 range is a positive for the jobs market. As these numbers drop, it will be easier to net out positive job growth, which will help bring down unemployemnt.
Of note in today’s report was that there were fewer layoffs in the construction industry. I bring this up because this is consistent with a previous Employment Situation report which showed some of the best new job growth was coming from the construction industry. Fewer layoffs, plus more new jobs being created for such a hard hit industry shows promising foreshadowing for the year ahead.
Are you encouraged by today’s report? I certainly am. And it was a fine way to finish out the year.
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