340,000 Initial Jobless Claims

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In this new normal economy I suppose this is considered good news – 340,000 initial jobless claims, a drop of 23,000 from the week prior which was revised upward by 3,000.

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Initial claims for state unemployment benefits dropped 23,000 to a seasonally adjusted 340,000, the Labor Department said Thursday, pushing back below the 350,000 mark that economists normally associate with a firming job market.

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Claims for the prior week were revised to show 3,000 more applications received than previously reported.

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Economists polled by Reuters had expected first-time applications to fall to 345,000 last week.

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The drop last week unwound most of the prior week’s jump, suggesting employers were not laying off workers in response to tighter fiscal policy, especially the $85 billion in across-the-board government spending cuts that have dampened factory activity.

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In other words, the dreaded sequester had no effect on the economy. What a shock.

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