The effects of the great recession are now lifting as is evident from the statistics regarding people seeking unemployment aid. According to the data provided, last week the number fell to its lowest level in 14 years. It goes to show that the labor market is strengthening, slowly but surely. This means that even though global growth has stalled, the impact is not as profound on the US job market as was expected.
The Labor Department announced that 264,000 people filed applications for unemployment support, signaling a drop of 23,000. More significantly, the number hasn’t been this low since April 2000, almost four administrations ago. Generally, unemployment aid applications are considered a proxy for the number of people who have lost their jobs.
The notable aspect is that the US population has increased significantly in the past 14 years, so the magnitude of this news might take a while to be realized. Even economists and analysts are at a loss to explain how things have turned for the better to this extent. The adjectives used for describing the situation were ‘spectacular’ and ‘astonishing’.
The unemployment statistics over the next couple of months will show whether the labor market is indeed strengthening.
Photo: NBC News