The government reported jobless numbers yesterday were a decent complement to the ADP report that is showing improvements in the market. Nobody is kidding themselves and thinking the raw numbers are great, but the fact that the jobless claims are shrinking is absolutely positive news. Beating forecasted numbers is always good news.
New applications for jobless benefits plunged to the lowest level in 14 weeks, a possible sign that the massive wave of layoffs has peaked. Still, the number of unemployed workers getting benefits climbed to a new record.
Retail results also improved as discounter Wal-Mart Stores Inc. and other stores reported April sales figures that beat expectations. Analysts acknowledged the positive economic signals but cautioned that any recovery will be subdued as long as unemployment stays high.
The Labor Department reported Thursday that the number newly laid off workers applying for benefits dropped to 601,000 last week. That was far better than the rise to 635,000 claims that economists expected.
