In a deviation from form, good employment news was finally reported by the Labor Department. Jobless claims have taken a surprise tumble, as employers are indeed employing. The economy is going to be slow in getting back to pre economic downturn levels. There was other good news. The trade deficit narrowed. Wall Street benefited from the announcements, as there was a modest gain in stocks. Gloom and doom types might have cause to smile a bit. This indicates a double dip recession may not be as likely as thought. Resource for this article – Jobless claims decline and trade deficit recedes by Personal Money Store.
Unemployed claims decrease before fall
Jobless claims, according to ABC, or the brand new filings for unemployment benefits, are at a two month low. It was not a huge drop, though. Only 27,000 fewer filings were recorded. The number of jobless claims is seasonally adjusted to 451,000 which beat Department of Labor estimate of 470,000. In August, private employers went on a miniature hiring spree. Overall, 67,000 jobs were added to payrolls nationwide. However, overall employment has technically declined over the last few months, as outlined by Bloomberg, as the Census is complete.
The trade deficit gets smaller
Over the month of August, the trade deficit, or amount of imported goods that exceeds the amount of exported goods, declined. Buy American; it is the right thing to do. Exports rose by 1.8 percent, to $ 153.3 billion in exports. The bulk of goods were equipment. Computers, machinery, and aircraft made up one of the most of it. Imports, on the other hand, dipped by 2.1 percent down to $ 196.1 billion for August after a 3 percent rise in June, for an overall deficit decline of 14 percent. That said, the main exporters to the United States of America actually shipped more goods. The bulk of imports come to the United States of America from Germany and China.
Very good news for jobs means good news for stocks
The very good news boded well for stock markets, as a slight gain was recorded on Wall Street. Do not bother your broker, though as the gain was less than one percent for any index. Ultimately, most signs point to a slow however steady recovery.
ABC News
abcnews.go.com/Business/wirestory?id=11592032 and page=1
Bloomberg
bloomberg.com/news/2010-09-09jobless-claims-in-u-s-decreased-by-more-than-estimated-27-000-to-451-000.html
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