The general trend on initial unemployment claims over the last few months has been largely encouraging, despite occasional setbacks, including one last week.
Today's report, however, was far more heartening. Initial jobless claims reached a four-year low a month ago, and returned to that level this week, beating expectations.
The number of Americans who filed requests for jobless benefits fell by 14,000 last week to 351,000, matching a four-year low, the U.S. Labor Department said Thursday. Claims from two weeks ago were revised up to 365,000 from 362,000. Economists surveyed by MarketWatch had projected claims would fall to a seasonally adjusted 355,000 in the week ended March 10. The average of new claims over the past four weeks, meanwhile, was unchanged at 355,750.
In terms of metrics, keep in mind, when these jobless claims fall below the 400,000 threshold, it's considered evidence of an improving jobs landscape. When the number drops below 370,000, it suggests jobs are actually being created rather quickly.
We've now dropped below 370,000 for six consecutive weeks, and seven of the last nine weeks.
And with that, here's the chart, showing weekly, initial unemployment claims going back to the beginning of 2007. (Remember, unlike the monthly jobs chart, a lower number is good news.) For context, I've added an arrow to show the point at which President Obama's Recovery Act began spending money.
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The jobs recovery is underway unless you happen to be one of the unfortunate Americans who have been unemployed for 26 weeks or longer as shown here:
http://viableopposition.blogspot.com/2012/02/americas-long-term-unemployed-it-is.html
It is unfortunate that there are those that have been out of work for such a long time. It offers a larger scope of the picture and discussion. However, I'd like to point out that this post talks about initial jobless claims, not long-term unemployment. With the global economy being how it is and the American economy still reeling from the effects of the recession, there will still be some heartache and unemployment. Yes, we need to recognize that we still have a ways to go, but we also need to take the time to enjoy triumph.
As MHP explained on last Sunday's show, for the "chronically unemployed," improving job numbers aren't much encouragement. When you have to be employed already to get a job, catch-22 is in full bloom.
Still, I wonder how the less-than-loyal oppostion will try to sink this report?
I agree this is great unless you are unemployed. However at least it's moving in the right direction.
Its hard to accept it as true when states and the federal government are continuing to make cuts in jobs and services (which equals more cuts to jobs for service providers). All I see as a California Community Colleges professor is a future with cuts to my paycheck while bills remain the same. Oh, except for my gasoline bill. That gets to go up.
I want to believe it; its just hard to see it from here.
The GOP is legislating more cuts to the public sector. Get public employees, those that provide needed services, on the street. Increase those unemployment numbers - that's exactly what the GOP top money funders mandated. The higher the unemployment, the better chance for a repub/tparty to get elected. The GOP has been after the USPS for a couple years - that'll be their cake, as they legislate a 5-day per week delivery schedule.
President Obama is counting on the wisdom of Americans to see through the sham of the repub/tparty. You are or have been unemployed thanks to GOP policies, basically - subsidize companies moving jobs out of the U.S. The GOP wants so badly to move into the WHouse, they've been stooping to the lowest level to feeD us their manipulated rhetoric - LIES. WE need OBAMA 2012
This is a great report and news for this nation and President Obama. When the numbers were bad the Republicans said that Pres Obama would be defeated because of the economy. Now that we are seeing an improved economy and the stock market is higher than it has been since 2000 what will be their new attacks on our outstanding leader and president Obama?
We have a big problem with part time employment. Employers have found it is cheaper to hire 20 part time employees rather than 10 full time. Discretionary income is what will stimulate this economy. Part time employees have little if any discretionary income.
The unemployed and underemployed are problem that Republicans do not want to help the Dems so nothing gets done. It is discouraging that we have a readily available pool of workers who are drawing unemployment and welfare when they could be employed and getting paid. This could easily be remedied by infrastructure spending which would bring down government spending in the social welfare programs. It is a choice where we want to spend the money. Republicans, for political reasons, do not want to spend it on either side to keep unemployment high.
Mike: That's so true. The GOP is counting on high unemployment to keep President Obama out of the WHouse. That has been their No. 1 Top Priority since our Prez sat down in the Oval Office. The base song of the repub/tparty was "NO" to anything and everything Prez Obama put before them, even the bills they themselves had proposed. The GOP must keep their big money funders smiling at our expense. The heck with us. A vote for President Obama is a vote for a saner U.S.
It's unfortunate that the gas prices are overshadowing the economy's slow recovery, and to a degree I'm willing to give the president some leeway because of all the B.S. the republicans and wall street are pulling over the Dodd, Frank bill in not being implemented. But if the president can't try and place some regulations on the oil companies and big banks from raping us, then who can, the better business bureau. There must be something he can do, call out all these S.O.B's like he did a few months ago if need be.
There is only so much a President can do - the Congress pretty much runs the country when it comes to money issues. Too many Americans are not aware how our government works. The Prez did try to pass legislation on banks and was stopped with repub/tparty amendments; same with oil companies. The repub/tparty have been having a heyday in Congress and you and we are paying for their good time. They have yet to pass a clean bill without their poison pills. Don't believe a word coming out of a repub/tparty, they do/say anything to get elected (see repub governor states) and then follow the agenda set for them by ALEC - a big money funded republican organization.
Unemployment claims at a 4 year low? Come on!
There were 6 times more jobs lost in March 2012 than gained and unemployment drops?
Let’s discuss the real issue here, not deceptive statistics.
Steve - Put up with your chart both the Fed Funds rate and 10 year US Treasury rate. Low short and long term interest rates are what caused the improvement in employment, not the Stimulus. The timing of the Stimulus was coincident with the decline in unemployment. Thank Uncle Ben Bernanke for this improvement.
I'm waiting for someone to explain to me WHY the unemployed are NOT a protected class under labor law.
NO UNEMPLOYED NEED APPLY
Really?
This is good news for the economy. If more people have jobs than tax revenues grow and we can reduce our national debt even faster. However, without an economic blueprint for the future, our economy will continue to grow slowly.
The good news is that an economic blueprint to reduce our debt over the long-term and make our economy more efficient already exists; its name is Bowles-Simpson.
The plan would accomplish necessary tax reform which would increase tax fairness and corporate competitiveness by lowering the marginal rate, removing tax expenditures, and moving to a territorial tax system. http://bit.ly/noTDPF