Drop In Unemployment, What Does it Mean?
Andover, Massachusetts August 26th, 2010 – Another week has passed and the Labor Department has released the newest jobless claims report. New Jobless claims dropped for the first time in 4 week which has led to a stronger opening on Wall Street. Claims dropped by 31,000 last week which was more than double the 15,000 drop that was expected by economists.
So what does this mean for the economy? It is good short term news but it isnt an indicator either way that this is the start of a new long term downward trend. While it is encouraging that the number of claims has dropped after a month long rise the rate is still above 470,000 which is probably around 70,000 more than there should be in a growing and healthy economy. Clearly we still have a ways to go, but lets take this good news and worry about the future tomorrow!
