Jobless Claims Fell Slightly Last Week, But Stagnation Prevails This Year
By James Picerno: Initial jobless claims slipped by 2,000 last week to a seasonally adjusted 387,000. That's enough to put a lid on fears that the economy's falling off a cliff now, today, this minute. But today's update also falls well short of inspiring confidence that stronger, sustained growth will quickly resume. Nonetheless, it's still hard to make a case that a new recession is imminent based on the latest numbers.It's clear, however, that the downward trend in jobless claims has slowed if not stalled. As the chart below shows, new filings for unemployment benefits have stagnated at roughly the 370,000-to-390,000 level. Confirmation arrives via the four-week moving average of new claims, which rose last week to the highest level since last December. We can call it a rough patch, a slowdown in the recovery, or a prelude to another recession. But whatever it's called it's undeniable that the labor market's expansionComplete Story »
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