Initial Jobless Claims -- Larger Drop Than Expected -- Biggest Weekly Drop Since Early May One Year Ago

Remember: the magic number is 400,000 (less is good)

Updates

Later, 10:30 a.m.: yesterday with the ADP unemployment numbers, I opined about the "R" word.  It appears the mainstream media's attempt to put a positive spin on today's numbers did not fool the market. The market did not respond positively to this "good news" jobs story, and oil is now down another $1.50, suggesting to me that folks are talking about the "R" word behind closed doors. Remember: a) half of the 17 EU countries are in recession; b) the most recent GDP numbers for the US came in less than expected; c) housing debacle is not expected to turn around for years, maybe decades; d) unemployment numbers are grim, despite the spin today ("initial jobless claims fell more than expected"). The mainstream media does not want to start talking about the "R" word in an election year when "hope and change" could very well be a possibility this November.

Half of the EU countries are in recession, and France is about to elect a socialist.

Later, 10:20 a.m.: a reader reminds us of the unemployed we don't hear about -- 86 million. These are the folks who have dropped out of the labor pool, for various reasons.

Original Post

Link here.

The number of Americans filing new claims for jobless aid fell more than expected last week, easing fears the labor market recovery was stalling.

Initial claims for state unemployment benefits dropped 27,000 to a seasonally adjusted 365,000, the Labor Department said on Thursday.

The biggest weekly drop in claims since early May last year helped to lift some of the dark cloud cast over the labor market by a report on Wednesday from payrolls processor ADP showing private employers in April created the fewest jobs in seven months.

We're on our way. Happy days are here again. (Sarcasm emoticon placed here.)