Record Jobless Claim Drop, Too Good To Be True

In the article, "What You Need to Know About Jobless Claims Drop" by Jeff Cox from CNBC, the topic revolves around the issue of the unusually low record of the jobless percentage of the population. Since the release of records showed that those who filed claims of having no jobs fell to a low 255,000, the economy seemed to be going into a more positive direction. However, the notion was simply distorted by other factors, therefore revealing that the economy has not significantly picked up. 

The drop in unemployment is not as significant due to the seasonal company opportunities as well as the narrowing of the considered population. This unemployment record will not affect the economy due to the Federal Reserve Bank being aware of the conditions, and thus not changing rates as well as a lack of change in the stock market.

The article attacks the jobless claims and the factors distorting the unemployment rate. Unemployment should not be considered to be solved, and it should defiantly not be assumed that there are ‘too many jobs’. Inflation has not become a prominent result yet due to the short term impact of the unemployment record, as shown by the similar drop in Nixon’s era. Gross Domestic Product has also not significantly increased this year, and this record will not alter it by much due to the lack of truth to it. Therefore, there is no need for claims of deficit. Although for some, personal debts may be solved, specifically the recently employed, the national debt has not actually been altered, and it should not be expected to. The world debts should be taken as the main priority since China and Greece are where attention should be. 

In summary, for the month of July, there was an unexpected drop in the record of unemployment claims. Although some take this as a sign for the rise of the general state of the economy, their perception has been distorted due to the multiple factors that should have been considered before making this claim which include the following: company seasonal jobs, narrowed work force, and past records of similar peaks. The population should not concentrate on this sudden peak but on the world-wide events like the collapse of Greece.

http://www.cnbc.com/2015/07/23/what-you-need-to-know-about-jobless-claims-drop.html