Jobless Claims Fell in Latest Week by Meena Thiruvengadam - Article Example

The news is worth economic importance as it had overwhelmed the expectations of the economic predictions as the Dow Jones Newswire predicted the count to go down by 7000 numbers. The article explains in detail the statistics in relation to the count of unemployed in the United States. The reduction in unemployment claims is a direct reference to the reduction in the unemployment rate. In this respect, this is a promising trend for the economy of the United States. This must be read together with the fact the unemployment rate is a direct indicator of economic wellness.

It has been confirmed by the researches in economics that the Gross Domestic Product in combination with other statistical economic indicators can effectively evaluate the economic performance of the nation. Gross National Product (GNP), Inflation, Demand, Unemployment, Net National Product (NNP), National Income, Personal Income and Disposable income, when considered along with Gross Domestic Product, can give a more precise figure on the nation’s economy and can prove efficient in comparing the performances of different national economies.

(Heakal, 2008).These indicators have complex relationships with each other and are proportionally linked. Thus the reduction in the count of reported requests for unemployment benefits, which is in other terms, reduction in unemployment is a positive sign for the US economy. As per the article, this downward trend in unemployment followed after a record hype in the unemployment rates resultantly the total count of unemployed in the US mounted to 5% of the total population, which was the highest unemployment rate ever after 1982.

Further, the article reports that the US economy showed strong signs of being close to recovery from the impacts of economic recession. This statement has been done with reference to the performance of the other economic indicators. The leading indicators showed an increase of 1% which was the highest in the last seven months. The author has also included the positive signs in Stock prices, interest-rate spread and consumer expectations in the month of April. It is also cited that though these indicators were on the positive mode, real money supply, and building permits contributed negatively to the economy.

The trends in the economy were well backed by the author using relevant statistical information. The article has done justice to the subject it has dealt with. The most interesting fact is that the author has approached the subject in an integrated way so that the subjects dealt with substantiating each other. This should be read together with the fact that unemployment along with Stock prices, interest-rate spread and consumer expectations are indicators of economic wellness. While comparing the positive signs shown by these indicators, the reader can justify the statement of the author that the US economy is nearing a stage of recovery.