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Weekly Jobless Claims Now Looking Far Better — Unemployment Next?

Jon C. Ogg

The U.S. Labor Department has reported a much larger drop in weekly jobless claims than was expected. The weekly jobless claims fell by 21,000 down to 323,000. Dow Jones and Bloomberg were both calling for a consensus of 335,000 in jobless claims.

We saw that the prior weekly claims report was revised higher to 344,000 from a 339,000 reported initially. Another factor was that the four-week average went to 338.500.

One concern is the continuing jobless claims. This is the army of unemployed, and it is reported with a one-week lag, compared to weekly claims. This figure rose by 66,000, up to 2.876 million claims.

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Better and better jobs reports means that quantitative easing can end sooner, and that means the $85 billion in bond purchases can begin to be tapered sooner rather than later. Good news is bad news.

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