Tuesday, September 14, 2010

August features fewer jobless claims and a reduced trade deficit

For the very first time in recent memory, the Department of Labor has some good employment news. Employers must be starting to hire again. There have been fewer jobless claims over the last month. Recovery within the job market is going to take longer than hoped, as signs point to a slow march toward recovery. To sweeten that good news, imports rose slightly, narrowing the trade deficit further. Stock markets also climbed a little higher on the news. A double dip economic downturn might be less likely than the naysayers contend.

Unemployed cases drop over August

As outlined by ABC, jobless cases are at a two month low. Unemployed claims, or new filings for unemployment benefits have dropped. It wasn’t a huge drop, though. Only 27,000 fewer filings were recorded. Seasonally adjusted, there were 451,000 jobless claims for August, beating the estimate of 470,000 from the Department of Labor. There were 67,000 new hires added to the payroll of private employers. That said, overall employment is really lower since the beginning of the year. As outlined by Bloomberg, there has been slightly higher joblessness since the government released Census employees.

Shrinkage for the trade deficit

A trade deficit is when the amount of imported goods exceeds exported goods. The trade deficit for the United States really shrank in August. It seems more people are willing to buy American. Exports rose by 1.8 percent, to $ 153.3 billion in exports. The bulk of exports were of computers, aircraft, and machinery. Imports fell after increasing by 3 percent in June. Imports fell 2.1 percent in August to $ 196.1 billion, a 14 percent decrease overall. That said, the primary exporters to the United States really shipped more goods. The bulk of imports come to the United States of America from Germany and China.

Great news for jobs indicates great news for shares

The good news of more new hires, fewer individuals taking joblessness and more goods being shipped by American companies led to a slight climb within the stock markets. Don’t bother your broker, though as the gain was less than one percent for any index. This kind of economic activity indicates that recovery is really taking place, but not as fast as some would like.

Further reading

ABC News

abcnews.go.com/Business/wirestory?id=11592032 and page=1



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