The nation's economy added 103,000 jobs in December and the unemployment rate dropped to 9.4 percent last month, its lowest level in 19 months. But the job growth fell short of expectations based on a strengthening economy.
The U.S. Labor Department says applications for unemployment aid rose by 18,000 to a seasonally adjusted 409,000 in the week ending Jan. 1. Applications fell to 391,000 in the previous week, the lowest point since July 2008.
Forecasts are primarily used as a tool to begin, not end, conversations about business and government matters.
The latest data confirm that the economy is improving, even though too few jobs are being created to lower the 9.8 percent unemployment rate.
Many of the best minds in the nation are endorsing the latest stimulus package, which retains the Bush tax cuts and reduces workers’ Social Security contributions nearly one-third.
The recession came to an official end 18 months ago, but Indiana’s unemployment rate hovered around 10 percent.
Many analysts think the economy is growing at a 3.5 percent pace or better mainly because consumers are spending more freely again.
Indiana’s jobless rate dropped for the second month in a row and has decreased four-tenths of a point since hitting 10.2 percent this summer.
All economists know that, at its core, inflation is caused solely by too much money chasing too few goods.
Chief regional economist Jim Diffley of IHS Global Insight says Indiana has grown faster than other manufacturing-heavy Midwestern states.
With hiring so weak, the unemployment rate rose from 9.6 percent to 9.8 percent. The jobless rate has now topped 9 percent for 19 straight months, the longest stretch on record.
Mike Alley, perhaps more than any other banker in the state, is experiencing the pain the economic crisis has wrought on the nation’s financial institutions.
Difficulties adjusting for the Thanksgiving holiday contributed to last week’s spike in new applications, a government analyst said. The four-week moving average of claims, which smooths volatility, fell to 431,000 last week, a two-year low.
A Labor Department analyst said weekly claims are volatile during the week between the Veteran’s Day and Thanksgiving holidays. A key question is whether claims will remain this low in future weeks.
Indiana’s unemployment rate in October dipped to 9.9 percent, marking the first time the rate has been below double digits since March.
Longtime economist Morton Marcus says the objective truth is that Indiana is in decline. He also insists the solution is a change in the culture, not just job creation.
Indiana University’s James Madison is “marginally optimistic” Americans have the fortitude to tackle what could grow to become an emergency ranking with the Civil War, the Great Depression and World War II.
The U.S. Labor Department said Wednesday that initial claims for jobless aid dropped by 24,000, to a seasonally adjusted 435,000. Many Wall Street economists expected a smaller decrease.
U.S. employers added the most jobs in five months in October, with the education and health care sectors leading the way.
Newly elected members of Congress will get a reminder Friday of the economic challenges they face in January: The jobs report for October is expected to show hiring weak and unemployment still high. The outlook for 2011 isn't much better.
