Initial Jobless Claims Fall for 2nd Week in a Row

Labor Department figures indicate that initial jobless claims fell by 6,000 to a seasonally adjusted 462,000.  Although we’re not far from signals for sustained job creation, that normally takes place below 425,000.  As I’ve indicated previously,initial job claims are considered a gauge of the pace of layoffs and an indication of companies’ willingness to hire new workers.  Nearly 5.7 million people were receiving extended benefits in the week that ended February 20, down from about 5.9 million the previous week.Once again, here’s Mark Zandi’s interpretative guideline:  Only when claims head down to 400,000 will the economy be creating enough jobs to maintain stable unemployment.  Closer to 350,000 will lower the unemployment rate and mean that the recovery is evolving into an expansion.  When we get to initial weekly unemployment claims of 300,000, boom times are back.In a hilarious conversation with one of my buddies this morning, a PhD biochemist, I commented on Krugman’s remark that many far too many people were misinformed about healthcare.  “Misinformed is the wrong term,” he stated.  “Uninformed is the appropriate term.”I write up these stats with interpretation nearly every week for my readers not merely for my own amusement, but so that readers will have better information on what’s going on economically and not get sidetracked by the status quo economic hype.  I’ve been shocked by the large number of readers that view this specific blog.  Eventually I’ll decide on another stat to help defuse the talking-head crap.Thanks for your interest!
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