New Unemployment Claims Drop, but Economy Still Losing Jobs

New unemployment claims dropped off last week, to a seasonally adjusted 502,000. That’s that fewest new claims since the week ending January 3 of this year. Analysts were expecting a higher number, but caution that it needs to fall even further before we will see a true turn around. New claims in the low 400,000 range should be an indication that jobs are being created at a faster rate than jobs are being cut. Predictions vary, but most seem to be looking at first quarter 2010 or early in the second quarter.