Diane Swonk, Chief Economist
Feb. 11, 2010 – 7:45 a.m. CT
A Ray of Hope in Employment?
Unemployment insurance claims dropped by 43,000, to 440,000 in the most recent week. Weather probably wasn't a factor, since many of the disruptions created by weather occurred just this week.
More importantly, continuing unemployment claims also dropped, which suggests that labor market conditions are further stabilizing.
Separately, the government reported that this is the first employment number this year that was not boosted by the backlog that occurred over the holidays, and is therefore a more accurate reflection of where we are with employment.
The Bottom Line: The recovery is slowly taking root. Any gains we see are likely to remain muted given the depth of the losses we endured, especially when it comes to jobs. We are moving forward, but instead of reaccelerating up to the speed limit, it feels more like we are stuck in a slow-moving traffic jam.
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