Jobless Claims: Hold Off on the Celebration

by: Eddy Elfenbein

More good news for the economy. The number of Americans who filed for their first week of jobless claims fell below 400,000 for the first time on over two years.

For the week that ended on December 25, 388,000 thousand American filed first-time claims. That’s down by 34,000 from the week before. This is very good news but I’m not ready celebrate just yet. We’ll get more information with next Friday’s employment report.

While the economy has definitely pulled out of recession, the growth hasn’t much filtered down to the employment sector. For businesses to continue to see improvement in profits, sales need to start growing and that means more jobs. Thursday’s news is good but we need to see a lot more of this.

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