Friday, October 7, 2016

Jobless Claims Drop Again Moving To It's Lowest Levels In Over A Half A Year

The number of Americans seeking unemployment benefits last week fell to the lowest level since mid-April. This is a sign that despite sluggish worldwide economic growth American workers are enjoying job security .

The Labor Department said in it's most recent report that weekly applications for jobless aid slid by 5,000 to a seasonally adjusted 249,000 while the four-week average dropped 2,500 to 253,500. This would be the lowest since December 1973. Overall, 2.06 million Americans are collecting unemployment checks, down more than 7% from a year ago.

Statisticians agree that any weekly number below 300,000 suggests the labor market is healthy. Take that into account given that the claims have come in below that level for 83 straight weeks. That marks the longest streak since 1973. Now take into account that in 1973 the U.S. labor force was about half as big as it is now.

The job market remains solid. At 4.9%, unemployment is close to what economists consider full employment. Employers have added 204,000 jobs a month for the past year and likely added another 175,000 last month, according to a survey of economists by the data firm FactSet in advance of Friday’s release of the September job report.

The reason for the unimpressive economic growth is that business investment has been weak. this has in turn slowed the economy growth which came in at an unimpressive 1.4% annual rate from April through July after growing just 0.8% in the first quarter and 0.9% in the last three months of 2015.

If investors would get up off their wallets and start doing their part the economy might actually start to reach it's full potential. In order for that to happen we have to get the partizan politicians to stop fear mongering this economy which by all measures is doing a bang up job despite their bad mouthing.

On a final note, although the pace of hiring has slowed since last year, economists say the U.S. only needs to add just over 100,000 jobs a month to keep up with the natural growth of the labor force. The economy has created at least 2 million new jobs every year since 2011.

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