The number of new jobless claims in the US fell by 14,000 to 442,00 for the week ending March 20th. This was fewer than expected and is a sign that the rate of job losses continues to slow as American employers struggle to keep their payrolls intact. While this is good news, for any chance of sustained growth, job losses must be reversed and new jobs must be created before consumer spending can help kick-start the world’s largest economy back to positive growth.
“There is continued firming in the labor market,†Bill Hampel, chief economist at the Credit Union National Association in Washington, said before the report. Initial claims above 400,000 are not yet “consistent with growing employment. Once the job numbers start to improve and household income starts rising, people will have more to spend,†he said.
Source: Bloomberg
