Jobless Claims Fell Last Week by Magdalena Rosova

Layoffs in United States are decreasing and hiring is recovering. In consequence, unemployment rates fell more than expected. Economists said it was an encouraging sign that the economy was closer to generate job gains. Since September 2008, when the financial crisis was the most intensive, the unemployment rates finally smoothed. An economist Zach Pandl believes that a hiring in on its way to a recovery. The Labor Department reported on Thursday that number of first-time claimers of jobless benefits dropped by 14,000 to 442,000. That is less than economists estimated. Most of the drop was caused by a change in the calculations of the Labor Department. Every year th! e department revises its data. Seasonal adjustment should filter out expected changes in employment, for example layoff of temporary workers after the winter holidays, and provide more accurate data. Without seasonal adjustment, the first-time claims for jobless benefits fell by 30,00 to 405,557. The positive report caused that the Dow Jones industrial average rose more than 119 points. In January and February the initial claims for unemployment benefits increased, but the fall in the past three weeks wiped out most of the growth in the first two months of 2010. According to majority of economists, when initial clams fall below 425,000 it means that the economy is able to consistently create jobs. But Carl Riccadonna, economist at Deutsche Bank, believes that economy will consistently create jobs in April. Analysts expect 150,000 new jobs to be created in March. Since the recession began in 2008, it would be the second time the economy has gained jobs.

relat! ed story (sgx16863): http://www.bloomberg.com/apps/news?pid=20601068&sid=aRjQPuqa...

by Magdalena Rosova for Cantell TV (http://cantell.tv)

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