It is easy to get discouraged over the latest weekly jobless claims, which unexpectedly increased by 11,000 after two consecutive weeks of declines. Many are calling it a setback in the recovery and proof of continued weakness in the job market. However, employment authority John A. Challenger says the rise in unemployment claims is hardly a sign that the recovery is failing to gain traction.
“Recoveries rarely exhibit a smooth ascent. They often contain ups and downs, especially early in the recovery period, as we are now. The job market is particularly volatile at the nascent stages of recovery. Many employers are still shedding workers from layoffs announced months ago and others are slow to hire as they wait for better business conditions to be more evident. The job market is likely to be a very late beneficiary of the economic rebound,” said Challenger.