U.S. Jobless Claims Drop to Lowest Level Since 2008

Fewer Americans than anticipated filed claims for unemployment benefits last week, pointing to an improvement in the labor market that will help sustain
economic growth next year.

Initial claims rise unexpectedly, then they fall unexpectedly. Measuring strength or weakness from deviations from expectations is a complete waste of time. Who sets the expectations? Direction and rate of change of the direction of the trend, not deviations from expectations, drive economic consensus. As trillions of dollars are injected into the economy, initial claims, naturally, have begun to decelerate. The dominant trend, however, remains up. When the debt-fueled injections do little to spur investment, the necessary driver for future economic growth, the trend deceleration will turn to acceleration in 2010-2011.

Further review of the average weekly initial clams: http://business-money-and-finance.blogspot.com/2009/12/new-jobless-benefit-claims-rise.html

Source: http://www.bloomberg.com/apps/news?pid=20601087&sid=aEKR_k1fXbgM&pos=1