Initial applications for state unemployment benefits fell sharply to 440,000 last week. That’s a 43,000 decline from the prior weeks 483,000 according to Labor Department reports on Thursday. Analysts, accustomed to less promising figures in recent weeks had forecast a drop in claims to only 465,000.
Last week, exceptionally high numbers, thought to be the result of backlog of claims that were not dealt with over the holidays discouraged many investors about the state of the economy.
The new jobless is such that some positive movement is becoming possible. The improvement is also such that it may help bolster stocks as more people gain faith in the recovery.
Recent economic reports from the White House indicate the administration is predicting the economy to create an average of 95,000 jobs a month this year.
U.S. economic output is also looking positive, reaching an annual 5.7 percent increase pace in the fourth quarter, though these numbers have yet to translate.
In January, the economy lost 20,000 jobs though the unemployment rate declined to 9.7 percent from the previous rate of 10.1 percent where it hovered for sometime.
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