Jobless claims — a leading indicator for unemployment — has been stuck in a flat range between 420,000 and 500,000 for over a year. This morning the Department of Labor announced initial jobless claims came in at a two-year low of 407,000. This was far below Wall Street’s expectations for 435,000 claims.
What Does the New Low in Jobless Claims Mean?
Well, not much … yet. Last year at this time, initial jobless claims fell 39,000, only to see the gains wiped out after New Year’s. However, if initial jobless claims can fall below 400,000 for a meaningful amount of time, that would be a great sign (relatively speaking) for the economy.
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