According to the Department of Labor, the number of Americans filing new unemployment benefit claims last week suddenly dropped. This is particularly good news to signify the labor market recovery.
Essentially, initial claims by state dropped 3,000 to a total of 302,000 for the week ending July 12. Per Reuters, economists forecasted first-time applications for jobless benefits at 310,000. And the four-week average of claims is in the vicinity of 309,000. That’s the lowest level since June 2007!
Let’s look at the big picture — employment continues to grow and more than 200,000 new jobs have been created over the past five months. That hasn’t happened since the late 1990s.
Since it’s the summer and vacations are plenty as hiring may slow down somewhat, it will be interesting to see what the next monthly jobs report reveals. Stay tuned…