“Jobless claims” is the pulse of economy. Although the unemployment rate boosted to unprecedented level in the United States of America due to recession in the past few years yet there is an encouraging trend which is being observed.
In the last four weeks, lesser people applied for jobless claims as compared to the recession period’s average jobless claims. This trend shows that the economy is healing. The steady demand in the job market signals that companies are not firing people and rather they are retaining them. The recent four-week statistics indicate that there will be more job creation leading to steady consumer spending which will further strengthen the economy. It means employees are losing jobs at lesser than average rate and the job cuts are diminishing. An economist at Nomura Securities International Inc said, “A gradual improvement in the labor market is going to be positive for consumer spending.”
President Obama introduced a plan in November to increase unemployment benefits which includes giving 20 more weeks of financial help to jobless people. The joblessness rate declined among those people who qualify for jobless claims in last week of November. There are forty one such states where the recent decline in jobless claims is identified and only twelve states have increasing trends. Initial unemployment claims are the indicator of the fact that how many employees have been fired within a week and this rate increases as the job growth becomes sluggish. The current unemployment is historically worst after World War II recession. But situation is now getting better gradually.
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