Thursday, December 15, 2011

Initial Jobless Claims Drop to Three-Year Low

Initial claims dropped significantly this week by 19,000 to 366,000, the lowest level since May 2008. This drop led the 4 week moving average down to 388,000, remaining below the important 400,000 level for the fifth consecutive month.

Although this drop is encouraging, it is important to note that seasonal factors are volatile this time of year. Iowa and Wisconsin led the areas reporting a drop in initial claims in areas reporting more than 1,000 fewer each. California and North Carolina led the states reporting initial claims jumping by over 1,000.

The continuing improvement in initial claims signals an early improvement in the job market. This improvement is not a signal that companies are hiring, but it does indicate they are holding onto current workers.

Read the report.

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