Decrease in Jobless Benefits

Economists have projected an increase in the economy by 3 percent for the year of 2005. It is down from last year’s 4.4 percent; however the growth rate is still respectable. In this the jobless benefits claims have reached an all time low in four years. The Federal Reserve Chairman Alan Greenspan believes that the “economic fundamentals have steadied with inflation and inflation expectations well anchored.” The decline of jobless claims has come to surprise economists, because they had projected an increase of 12,000.

1 comment:

Dr. Tufte said...

Any rate of real GDP growth above 2% per year will tend to push down new claims for jobless benefits. We have been sustaining that rate easily for about 6 quarters, and on average for 13-14 quarters.