Claims for unemployment benefits fell to their lowest numbers in almost a year. The latest news continues to suggest that the economy is slowly, but surely beginning to show signs of recovery.
Analysts believe that the numbers will still increase (just under ten percent) when the numbers for October are released on Friday. It appears that businesses are still wary about hiring new employees, until further economic data shows that bigger and better strides are being made.
First time jobless claims dropped by almost twenty thousand, beating expectations. The seasonally adjusted average is now 512,000, which is still dramatically above 400,000, a number economists say signals job growth.
From July to September, the economy showed its first signs of life by growing for the first time in four quarters, giving the US hope that the recession is over.
Many experts believe that we are not out of the woods just yet and believe that the growing economy is mostly due to government stimulus, which is beginning to come to an end. At this time, politicians are still working on extending the home buyer tax credit, but programs like Cash for Clunkers, after fueling auto sales, have been put to rest.
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