DOL Notes Lower Unemployment Claims

October 8, 2009

Washington - The Department of Labor (DOL) said Thursday that claims for unemployment insurance had significantly decreased last week, which is lesser compared to January’s statistical records.

The department said this record signifies healing in the US economy and experts said that more than 325,000 claims were consistent with a good economy.

There were 521,000 claims—a drop from 554,000 from two weeks ago. In January 17, there were 539,750. “The downtrend in claims is encouraging and points to continued, albeit gradual, improvement in the labor market,” Joseph LaVorgna, chief U.S. economist at Deutsche Bank, wrote in a note to clients.

There was an increase in back to school sales because of delayed Labor Day and school openings. The Dow Jones industrial average increased by 100 points, stock market rose in early afternoon trading and broader indexes gained.

One year old J.C. Penney Co., Macy's Inc., and Target Corp. had fewer declines in sales. Limited Brands Inc. (Victoria's Secret and Bath & Body Works) and The Buckle Inc. had increased this month.

However, the industry is still worried because of the holiday season because consumers were more concerned with job losses, less hours or unavailable credit.

The Commerce Department reported companies decreased inventories in their wholesales. Sales were significantly greater in 14 months.