Jim Sinclair writes on his site:
Remember the huge expression of glee in the markets when unemployment went from 9.5% to 9.4%, heralded as a major economic turnaround?
12,000 less people showing up for unemployment insurance money is not a trend changer, nor an economic event of merit. This event resulted in a major public address by the President of the USA this morning.
Initial Jobless Claims in U.S. Fall to 10-Month Low
By Courtney Schlisserman
Nov. 12 (Bloomberg) — Fewer Americans than anticipated filed claims for jobless benefits last week, signaling the worst employment slump in the post-World War II era is easing as the economy expands.
Initial unemployment claims fell by 12,000 to 502,000 in the week ended Nov. 7, the lowest level since January, Labor Department figures showed today in Washington. The number of people receiving jobless benefits dropped, as did those getting extended payments.
Firings may slow as the loss of 7.3 million jobs since the recession began in December 2007 probably means many companies have already cut staff to bare minimums. That may not stop the jobless rate from climbing further after reaching a 26-year high in October as the shortest workweek on record gives employers room to increase hours before taking on staff.
The drop in claims is “reassuring, but these levels are still consistent with job losses,” said Jonathan Basile, an economist at Credit Suisse in New York. “We’re not getting a strong enough vote of confidence yet from claims to say companies have stepped up their hiring and greatly reduced their pace of layoffs.”