Jobless Claims at All Time Low: 162,000 Jobs Added in July, Unemployment at 7.4%
Jobless claims were reduced to an all time low in the last week of January matching numbers that have not been as promising since January 2008.
The number of people applying for unemployment applications in the week ending on July 27th was reduced by over 19,000 according to reports. The number of applicants was reduced to 326,000- a new low that hasn't been hit since 2008 according to a Labor Department report that was filed in Washington on Thursday.
The slow down of employees being fired could show promise of confidence in employers who may consider extended their payrolls instead. The low figure is better that what analysts were expecting.
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"It's a stronger labor market than anybody thought we'd be seeing this time of year," Guy Berger, an economist at RBS Securities Inc. in Stamford, Connecticut, told Bloomberg. The low unemployment numbers include the anticipated slump created by auto plant shutdowns. Unemployment in these areas was also reduced this year.
"We're talking about continued decent payroll growth," Berger added.
Viewed as an important factor for assessing job growth, the new numbers reflect signs of a continually improving economy. Caution remains however, that the numbers could still go up.
"We are optimistic that the downward trend in claims will persist and that the labor market will continue to improve, but we are also cautious that claims may rise again in the next few weeks," Thomas Simons, money market economist for Jefferies & Co., said according to CNN Money.
Payrolls also increased last month as 195,000 workers were added in the month of June. But a Department of Labor report said on Friday that only 162,000 jobs were added in July, lower than the 185,000 jobs that were projected by economists. Regardless, the unemployment rate dropped to 7.4 percent.
