Jobless claims are dropping as the economy continues to slowly rise.
According to a release from the Department of Labor, seasonally adjusted data shows a drop in jobless claims for the last week of September totaling 36,000. The decrease is larger than the previous week’s drop, signaling economic momentum is building:
In the week ending September 26, the advance figure for seasonally adjusted initial claims was 837,000, a decrease of 36,000 from the previous week’s revised level. The previous week’s level was revised up by 3,000 from 870,000 to 873,000. The 4-week moving average was 867,250, a decrease of 11,750 from the previous week’s revised average. The previous week’s average was revised up by 750 from 878,250 to 879,000.
This puts claims at the lowest level they’ve been since March.
The economic rise has continued apace. Earlier this week, it was reported by Reuters that consumer confidence is also up by double digits points, surpassing the predictions made by economists:
U.S. consumer confidence rebounded more than expected in September as households’ views of the labor market improved.
The Conference Board said on Tuesday its consumer confidence index increased to a reading of 101.8 this month from 86.3 in August. Economists polled by Reuters had forecast the index edging up to a reading of 89.5 in September.
Confidence in businesses has also contributed to this:
The percentage of consumers claiming business conditions are “good” increased from 16.0 percent to 18.3 percent, while those claiming business conditions are “bad” decreased from 43.3 percent to 37.4 percent. Consumers’ assessment of the labor market also improved. The percentage of consumers saying jobs are “plentiful” increased from 21.4 percent to 22.9 percent, while those claiming jobs are “hard to get” decreased from 23.6 percent to 20.0 percent.
As fears of the Coronavirus begin to fade and numbers drop, the economy seems to be making a steady recovery, even as federal benefits are reduced by half.
These falling jobless numbers are accompanied by a falling unemployment rate that has been a trend since the height of the coronavirus pandemic. We’re likely to get new unemployment numbers for September soon, and if the pattern has held, we’ll likely see another drop overall.