Unemployment claims fall in sign U.S. job market may be mending - Bloomberg

[Bozita]

Last Updated: October 28. 2010 11:32AM
Unemployment claims fall in sign U.S. job market may be mending
Courtney Schlisserman / Bloomberg News

Claims for jobless benefits unexpectedly dropped last week to a three-month low, a sign the U.S. labor market may be starting to mend.

Initial jobless claims decreased by 21,000 to 434,000 in the week ended Oct. 23, the lowest since early July when fewer auto plants than normal closed for retooling, Labor Department figures showed today in Washington. The total number of people receiving unemployment insurance dropped to a two-year low, while those getting extended payments also fell.

Consumer spending, which accounts for about 70 percent of the economy, is beginning to stir and may give employers reason to add workers ahead of the holiday shopping season. Fewer firings are an initial step toward more hiring as companies such as Ford Motor Co. see sales improve.

"Certainly these are encouraging numbers," said Brian Jones, senior economist at Societe Generale SA in New York, who forecast claims would drop to 430,000. "At the same time," he said, "given other labor-market readings, you want to be hesitant about saying we've turned the corner."

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From The Detroit News: http://www.detnews.com/article/20101028/BIZ/10280449/1361/Unemployment-claims-fall-in-sign-U.S.-job-market-may-be-mending#ixzz13ff0z5Dl

[glowing]

1. Nahh.. just running out of benefits.. maybe taking the two to three jobs to survive.

[ixion]

2. no, it will be mending when there are jobs

it's a red herring to try and calculate that from the unemployment stats, in my opinion.

[Donnachaidh]

3. so those 434K NEW claims are disappeared, right?

I love the smell of spin in the morning. :sarcasm:

[Scurrilous]

4. Thanks.

K & R :thumbsup: