It looks like Santa brought Christmas cheer in December.
A Labor Department report Thursday provided some cause for optimism: Claims for unemployment aid barely rose last week after falling in the previous week to the lowest point since July 2008. And the four-week average of claims fell for the 18th straight week to 450,250. That figure has reached its lowest level since September 2008, when the financial crisis intensified with the collapse of Lehman Brothers.
A gain in jobs for December could improve consumer confidence and spur greater spending, fueling the economic recovery.
Many analysts predict the economy grew by up to 4 percent at an annual rate in the October-December quarter. Federal Reserve officials and private economists worry that much of the recovery stems from temporary factors, such as government stimulus efforts and businesses rebuilding inventories.
Worry? Why Worry?
I'm in favor of an improving economic climate in 2010. One sure way to avoid electorial slaughter in November is if we can deliver job numbers that show promise by August. It's great to see that already we're headed in the right direction.
Retail has had an improved Christmas season, with Inventories managed well and delivering profits without obscene 90% off slash and burn sales on the latest cheap cheaps. I think the economy is growing again and getting back on track and it couldn't be soon enough, though it will take years before we're back to the optimal 5% Unemployment rate again.