In a sign that things may be getting better in two critical aspects of the economy, the number of initial unemployment claims filed dropped more than expected and foreclosures declined for the third month in a row.
The Labor Department reported that the number of initial unemployment claims filed dropped by 12,000 to 502,000. That is the lowest level of initial claims since January. Continuing claims also fell, dropping by 139,000 to 5.63 million from last weeks 5.77 million figure.
Analysts had projected that 510,000 people would file initial claims, with estimates ranging from 495,000 to 525,000.
Seven states showed a decline in claims of more than 1,000, led by California's decrease of 6,752 claims. On the downside, four states showed an increase of more than 1,000 claims, with Wisconsin's increase of 1,501 the worst.
Analysts said that the latest data is another sign that companies are already at very low staffing levels and do not have much more room to cut jobs. However, they warn, with the average work week at only 33 hours, employers will not have to start hiring at a rapid pace. They can add hours to the schedule of their current employees before they have to start hiring new ones. "We're not getting a strong enough vote of confidence yet from claims to say companies have stepped up their hiring and greatly reduced their pace of layoffs" is how one analyst at Credit Suisse put it.
Still, economists at JPMorgan Chase said that initial claims levels around 500,000 are consistent with stable payrolls. And other economists said that the economy is reaching the point where stabilization in jobs can be expected, with a swing to rising employment following.
In another positive sign for the economy, the number of foreclosures fell for the third month in a row. RealtyTrac reported that foreclosed properties fell to 332,292 in October, a decline of three percent from the month before. However, they cautioned, the number of foreclosures is still up by 19 percent from the prior year.
In comments accompanying the release of the data, the CEO of RealtyTrac said that decline in foreclosures for three months in a row was "unprecedented" and may be a sign that "the foreclosure tide may be turning." However, he warned, the combination of negative equity, high unemployment, and high risk mortgages "continue to loom" over the housing market.
The same markets that have seen the most foreclosures continued to lead the list. Nevada, California, and Florida were the states with the most foreclosures. In Nevada, a whopping one in 80 properties is in some stage of the foreclosure process. That is nearly double the rate of California's one in 156 homes and more than double Florida's one in 168 homes.
All of the top ten metro areas for foreclosures are in those three states. Las Vegas, where an incredible one in 68 homes -- more than five times the national average -- is in some stage of foreclosure, led the country. California claimed seven of the ten leaders in this category, with Florida taking two of them.
Still, while the news is far from good, there are signs of improvement. With the steep plunge that the labor and housing markets took, we cannot expect a rapid recovery. The patient is off life support, but he's still in the hospital.
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The Labor Department reported that the number of initial unemployment claims filed dropped by 12,000 to 502,000. That is the lowest level of initial claims since January. Continuing claims also fell, dropping by 139,000 to 5.63 million from last weeks 5.77 million figure.
Analysts had projected that 510,000 people would file initial claims, with estimates ranging from 495,000 to 525,000.
Seven states showed a decline in claims of more than 1,000, led by California's decrease of 6,752 claims. On the downside, four states showed an increase of more than 1,000 claims, with Wisconsin's increase of 1,501 the worst.
Analysts said that the latest data is another sign that companies are already at very low staffing levels and do not have much more room to cut jobs. However, they warn, with the average work week at only 33 hours, employers will not have to start hiring at a rapid pace. They can add hours to the schedule of their current employees before they have to start hiring new ones. "We're not getting a strong enough vote of confidence yet from claims to say companies have stepped up their hiring and greatly reduced their pace of layoffs" is how one analyst at Credit Suisse put it.
Still, economists at JPMorgan Chase said that initial claims levels around 500,000 are consistent with stable payrolls. And other economists said that the economy is reaching the point where stabilization in jobs can be expected, with a swing to rising employment following.
In another positive sign for the economy, the number of foreclosures fell for the third month in a row. RealtyTrac reported that foreclosed properties fell to 332,292 in October, a decline of three percent from the month before. However, they cautioned, the number of foreclosures is still up by 19 percent from the prior year.
In comments accompanying the release of the data, the CEO of RealtyTrac said that decline in foreclosures for three months in a row was "unprecedented" and may be a sign that "the foreclosure tide may be turning." However, he warned, the combination of negative equity, high unemployment, and high risk mortgages "continue to loom" over the housing market.
The same markets that have seen the most foreclosures continued to lead the list. Nevada, California, and Florida were the states with the most foreclosures. In Nevada, a whopping one in 80 properties is in some stage of the foreclosure process. That is nearly double the rate of California's one in 156 homes and more than double Florida's one in 168 homes.
All of the top ten metro areas for foreclosures are in those three states. Las Vegas, where an incredible one in 68 homes -- more than five times the national average -- is in some stage of foreclosure, led the country. California claimed seven of the ten leaders in this category, with Florida taking two of them.
Still, while the news is far from good, there are signs of improvement. With the steep plunge that the labor and housing markets took, we cannot expect a rapid recovery. The patient is off life support, but he's still in the hospital.
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