Thursday, January 19, 2012

Unemployment Claims Plummet

The singular biggest metric to watch for business activity (IMHO) is the first time unemployment claims number.  This number is going down consistently which means business activity will pick up.  Unemployed people will begin working and employed people will feel more confident.

The graph below from Northern Trust tells the story:

Since September we have been going straight down with the initial claims.  Don't let the naysayers fool you by saying "people are dropping out of the market".  These are first time claims so just about everyone files their initial claim.  Firing slows way down and therefore we know the economy is stabilizing.

Good news for everyone and especially trucking and logistics firms.  More workers, more confidence, more buying, more freight.. it is that simple.    

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