Jobless Claims fell more than expected, dropping -15,000 to 358,000, coming in much better than the consensus, which expected a slight increase to 370K.
While last week’s numbers were revised up by 6,000 to 373K, the 4-week average was down -11,000 to 366,250.
The trend of improvement is clear; the jobs market is definitely recovering. I know there are plenty of doubters who look at the Jobless Claims and the Employment reports with skepticism. And I don’t blame them. But the numbers are in, and there is no doubt that things are getting better.
The incremental improvements we’re seeing in so many areas of the economy should continue to support the jobs market. And the additional hiring (and less firing) should provide even more support for the economy, which in turn will provide for even more jobs growth. Nothing adds to the economy more than more people working, since a large portion of those paychecks go right back into the economy through consumer spending.
The markets turned positive on the news in pre-market activity. Let’s hope this carries over into the regular session throughout the day.
