September 26th, 2013 by Peter Kedzior
For the week ended 20 September, the number of people claiming unemployment benefits fell to 305,000, down from 309,000 the week before. Most experts predicted the number of layoffs go to back to at least 320,000 a week – to better reflect a difficult job market of the last two quarters. If the number of people losing jobs stays close to 300,000 (a pre-recession level), it would signal a very positive trend – even with new job creation as slow as it has been for the last 3 years, the number of unemployed workers would be getting lower and lower due to fewer people losing jobs. A continued slowdown of layoffs is creating a sense of better job security for the general population and may encourage increase in consumer spending – a vital part of the economic recovery.