Companies might be hiring again as new jobless claims drop

The federal government has recently declared that brand new jobless claims have started to drop recently. Long term joblessness claims dropped also, so it may not be a fluke. It's possible the unemployment rate could greatly improve this year.

Layoffs and joblessness claims drop in weekly surveys

There was some information released by the United States Department of Labor. This was job market information by the week. CNN reports that a 6,000 decrease in initial jobless claims were filed in the week that ended on March 26. These are brand new applications for joblessness benefits. There was a 3,000 increase in unemployment benefits in the four-week average of initial jobless claims. The number of brand new individuals claiming unemployment benefits was increasing for few weeks, however then turned right around and dropped. Private companies are having fewer layoff announcements. This is also a decreasing number, USA Today states.

Slow however steady winning the race

Short term unemployment claims aside, long term unemployment claims — the number of people continually filing for unemployment benefits — fell by 51,000 during the week that ended March 19. There was a 31,000 decrease in the four-week average. That means that in March, fewer people are unemployed. The private sector is hiring again. This mostly just involves smaller businesses. Automatic Data Processing, Inc., is a payroll administration company. It explained the private sector had over 201,000 new jobs on payrolls added. Manufacturing jobs are also starting to increase, in accordance with Reuters, as more factory jobs were observed to have been created in the Midwest. Huge firms are also ready to hire again according to a survey of large corporate CEOs. Over half of responders said the companies would be hiring in the next year more employees.

Productivity up in America

There is good news that came from the few years of high unemployment. MSNBC reports that it brought on Americans workers to become more productive. Employment has not been increasing although output in America is almost too where it was before the recession. The same amount of work is getting down with fewer individuals. That also means they’re being paid less for it. However, if the recent trends in employment data are signs of growth returning, that means some of the overworked and underpaid may become less overworked in coming months. Getting paid more is unlikely. It could happen though.

Articles cited

CNN

money.cnn.com/2011/03/31/news/economy/initial_claims/index.htm

USA Today

usatoday.com/money/economy/2011-03-30-hiring-picking-up.htm

Reuters

reuters.com/article/2011/03/31/us-usa-economy-idUSN3027570820110331?pageNumber=1

MSNBC

msnbc.msn.com/id/42349181/ns/business-world_business/