Employment Picture Brightens, Reports Show

The U.S. employment picture brightened slightly with a drop in the number filing new claims for unemployment benefits last week, as reported by the Labor Department, coupled with a separate report of a drop in the number of announced job cuts in April.

The news suggests that the economic recovery may be trickling down to the labor markets, which could boost consumer confidence and spending, both of which are positive signs for the trucking industry.

The employment news was matched by a Commerce Department report that March factory orders exceeded expectations. (Click here for that story.)

U.S. companies announced 112,649 job cuts in April, down 32% from the number announced in the same month last year, a major job placement firm announced Thursday.

Challenger, Gray & Christmas compiles the number of job cuts announced each month and points out that announcements are not firings or layoffs and some of these cuts may not be made.

Initial jobless claims fell by 10,000 last week to 418,000, the Labor Department said Thursday.

The four-week moving average, a measure that takes the volatility out of the week to week statistic, fell to 435,750 from 454,250 last week.

The weekly drop in initial jobless claims brought the figure down to their lowest point since March 23.

The chief executive of Challenger, John Challenger, told Bloomberg that while the economy’s “fever has broken,” companies are not finished cutting payrolls.

These two reports come one day before Labor’s release of monthly unemployment and payroll figures.

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