JOBLESS CLAIMS POINT TO JOB GAINS

JOBLESS CLAIMS POINT TO JOB GAINS

Courtesy of The Pragmatic Capitalist

Jobless claims continue their slow grind lower.  The latest reading of 432K was substantially better than the expectations of 460K.   Claims have made a dramatic improvement from their April peak of 658K.  Perhaps most important is the vast improvement in continuing claims.  Continuing claims came in at 4.98MM this week versus their cycle high of 6.77MM earlier this year.  All of this points to jobs gains in 2010.  Next week’s jobs report is currently pointing to a flat jobs report, but this data is almost certain to turn into jobs gains by early next year.   The tepid pace of gains is a clear sign of the weak recovery, but a recovery no less.