The United States Department of Labor has just announced some very good news about employment. Fewer unemployed cases were recorded for August along with more new hires. However, the slow pace of hires suggests that job market recovery could be an ongoing process. To sweeten that good news, imports rose slightly, narrowing the trade deficit further. Wall Street benefited from the announcements, as there was a modest gain in stocks. A double dip recession might in fact be less likely.
Unemployed cases drop over August
Jobless claims, or new filings for unemployment benefits, fell over the last month to the lowest level in two months, as outlined by ABC. In all, 27,000 less cases for unemployment benefits were added. The number of jobless claims is seasonally adjusted to 451,000 which beat Department of Labor estimate of 470,000. There were 67,000 new hires added to the payroll of private employers. That said, overall employment is actually down since the beginning of the year. As outlined by Bloomberg, there has been slightly higher joblessness since the government released Census employees.
Shrinkage for the trade deficit
There was also a reduction in the trade deficit, or the gap between the amount of imported goods and exported goods. It turns out that people nevertheless buy American, even if overseas. Exports rose to $ 153.3 billion. The gain was 1.8 percent. The bulk of goods were equipment. Computers, machinery, and aircraft made up probably the most of it. Imports fell after increasing by 3 percent in June. Imports fell 2.1 percent in August to $ 196.1 billion, a 14 percent decrease overall. That said, the main exporters to the United States of America really shipped more goods. The bulk of imports come to the United States of America from Germany and China.
Very good news for jobs indicates very good news for stocks
The good news of more new hires, fewer people taking joblessness and more goods being shipped by American corporations led to a slight climb in the stock markets. It wasn’t a huge boost. It was less than 1 percent for all indexes. This kind of economic activity indicates that recovery is really taking place, however not as fast as some would like.
ABC News
abcnews.go.com/Business/wirestory?id=11592032 and page=1
Bloomberg
bloomberg.com/news/2010-09-09jobless-claims-in-u-s-decreased-by-more-than-estimated-27-000-to-451-000.html
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