Today’s Jobless Claims were a pleasant surprise, dropping -35,000 to 353,000 vs. expectations for 380,000. The four-week average also dropped as well, shedding 8,750 to 367,500.
New claims are now near their best levels since the post-crisis recovery began. And the four-week average is fast approaching its best levels.
As with the previous two reports, analysts were quick to point out the volatility of these numbers due to the summer months, which are typically prone to more swings. Nonetheless, seasonality aside, it was a very encouraging number, especially given the drop in the less-volatile, and smoothed out 4-week average.
Of course, less firing doesn’t necessarily mean more hiring. But, in general, that’s the sequential procession of things. And it bodes well for future employment reports.
Not ready to break out the champagne. But it’s perfectly alright to breathe a little sigh of relief at today’s report.
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