In the Obama economy, 331,000 initial jobless claims is considered good news. It’s even better because economists didn’t expect it. But it isn’t all great news, employers are still a bit hesitant to hire.
The number of Americans filing applications for unemployment benefits fell more than forecast last week, a sign that the U.S. labor market continues to make progress.
Jobless claims in the week ended Aug. 24 dropped 6,000 to 331,000 from a revised 337,000 the week before that was higher than initially reported, the Labor Department said today in Washington. The median forecast of 50 economists surveyed by Bloomberg called for a drop to 332,000.
As the effects of higher taxes and federal budget cuts begin to fade, employers are preparing for rising demand and improved growth by maintaining their workforces. While companies are reluctant to fire workers, they’ve made less progress on creating new jobs as they brace for a political showdown over the deficit, new health care laws and the Federal Reserve’s plan to dial down its record $85 billion-a-month stimulus. (Read More)
Unfortunately, most of the new jobs created these days are part time jobs, thanks in large part to Obamacare.
Update: In other economic news, the revised Q2 GDP was revised upward, but personal consumption and fixed investment were revised lower, so the good news is a bit of a wash.