340,000 Initial Jobless Claims

unemployment

In this new normal economy I suppose this is considered good news – 340,000 initial jobless claims, a drop of 23,000 from the week prior which was revised upward by 3,000.

Initial claims for state unemployment benefits dropped 23,000 to a seasonally adjusted 340,000, the Labor Department said Thursday, pushing back below the 350,000 mark that economists normally associate with a firming job market.

Claims for the prior week were revised to show 3,000 more applications received than previously reported.

Economists polled by Reuters had expected first-time applications to fall to 345,000 last week.

The drop last week unwound most of the prior week’s jump, suggesting employers were not laying off workers in response to tighter fiscal policy, especially the $85 billion in across-the-board government spending cuts that have dampened factory activity.

In other words, the dreaded sequester had no effect on the economy. What a shock.