First-Time Jobless Applications Plunge

[Purveyor]

Source: The Hill

First-time jobless claims fell sharply last week, a positive sign in the job market's slow recovery.

Those filing for unemployment benefits fell 26,000 to a u a seasonally adjusted 359,000, the best showing in more than two months, the Labor Department reported Thursday.

The four-week moving average, which is a better indicator of the job market's trend, also dropped, down 4,500 to to 374,000, after rising for six weeks.

The figure is finally back below the 375,000 economists argue reflects a healthier job market and a hiring pace by employers that is fast enough to bring down the unemployment rate, which now sits at 8.1 percent.

Read more: http://thehill.com/blogs/on-the-money/economy/258911-first-time-jobless-applications-plunge

[bhikkhu]

1. Before anyone gets too fired up about the discouraged workers angle -

...keep in mind that the shrinkage in the labor participation rate has been predictable for a very long time. The "bump" in the chart is the baby boom, which is now proceeding into retirement. Even with the un-predicted recession, the numbers are roughly following expectations.

[JayhawkSD]

2. Plunge?

A drop of 7% is not a "plunge." It is, at best, a modest drop. Welcom, sure, but hardly dramatic.

At 359,000 per week, we have a very, very long way to go. Plunge. Please.