Sometimes, when it comes to the economy, boring news is good news. Take the latest Labor Department report on initial unemployment claims, for example.
The number of people who applied for U.S. unemployment benefits edged up by 3,000 to 271,000 in the seven days from June 14 to June 20, but layoffs remain quite low amid a steady increase in hiring and a tightening labor market. Economists polled by MarketWatch had expected claims to total a seasonally adjusted 274,000.The average of new claims over the past month, meanwhile, fell by 3,250 to 273,750, the Labor Department said Thursday.
To reiterate the point I make every Thursday morning, it’s worth remembering that week-to-week results can vary widely, and it’s best not to read too much significance into any one report.
In terms of metrics, when jobless claims fall below the 400,000 threshold, it’s considered evidence of an improving jobs landscape. At this point, we’ve been below 300,000 in 35 of the last 41 weeks.
Above you’ll find the chart showing weekly, initial unemployment claims going back to the beginning of 2007. (Remember, unlike the monthly jobs chart, a lower number is good news.) For context, I’ve added an arrow to show the point at which President Obama’s Recovery Act began spending money.