The U.S. Labor Department has some good news regarding last month. Jobless claims have taken a surprise tumble, as employers are indeed hiring. That said, the pace is slow. The indicators are that the job market will take longer to get back to normal. The trade deficit also decreased, another positive sign. Stock markets also climbed a little higher on the news. This means a double dip recession is less likely than thought.
August a great month for workers as jobless claims drop
According to ABC, jobless claims are at a two-month low. Jobless claims or new filings for unemployment benefits have dropped. There were 27,000 fewer claims filed. The Department of Labor had estimated there would be 470,000, seasonally adjusted, jobless claims. There were 451,000. Private employers hired 67,000 more people in August. As the government released Census workers earlier this year, the last few months have technically had higher unemployment, according to Bloomberg.
Shrinkage for the trade deficit
A trade deficit is when the amount of imported goods exceeds exported goods. The trade deficit for the U.S. shrank in August as imports decreased and exports increased. It turns out that people still buy American, even overseas. Exports rose to $153.3 billion. The gain was 1.8 percent. The bulk of goods were equipment. Computers, machinery and aircraft made up the highest percentage of exports. Imports fell to $196.1 billion, a 2.1 percent decline. The fall for August is encouraging, as it marks a 14 percent decline from June, when imports rose 3 percent. Germany and China, the main exporters to the U.S., actually shipped more goods than usual.
Stock markets gain
The good news of more new hires, fewer people taking unemployment and more goods being shipped by American companies led to a slight climb in the stock markets. The boost was not huge; less than 1 percent for all indexes. Recovery is happening. It’s just taking its sweet time.
ABC News: http://abcnews.go.com/Business/wirestory?id=11592032&page=1
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