A brand new sign has appeared which is hinting towards an improved and recovering United States economy, as reports revealed that the count of those people who were looking to gain from unemployment benefits or the count of unemployment benefits application dropped in the largest economy of the world in the past week and fell to its lowest level in nearly four years.
According to the Labor Department, weekly unemployment benefit applications fell by 13,000, to settle at a value of 348,000 (seasonally adjusted). This is the fourth time unemployment benefit applications have dropped in five weeks. The figures revealing data on last week’s unemployment benefit applications revealed that the number dropped to its lowest since March 2008, six months prior to the collapse of Lehman Brothers and just a few months in the Great Recession.
After taking out the four week average, which is used because it smoothens fluctuations in weekly information/data, it was revealed that unemployment benefit applications dropped for the fifth straight time in a row, reaching 365,250. However, even though the United States economy is improving, hiring has still not improved as much it should to bring down the unemployment rate.
When unemployment benefit applications drop beneath 375,000, it means that hiring to a good degree that it will be able to bring down the unemployment rate. According to BNP Paribas senior economist Jeremy Lawson, the Labor Department’s report this week points towards a rise in hiring in February. He said that most of the indictors hint towards the same direction, which is an improving and healthy job market. He further said that more jobs will provide higher income for Americans and also help them spend more, which will increase consumer spending activity in the economy.
70 percent of the United States economy is based on consumer spending and when consumer spending rises, growth will improve automatically.
