The latest signal showing how the job market is gradually improving, is the 4-year low in unemployment applications. The Labor Department reported that weekly applications for unemployment benefits fell 13,000 to a seasonally adjusted 348,000. It was the fewest number of claims since March 2008 and the fourth drop in five weeks. The average has fallen almost 13 percent in the last year. The economy has added a net of 243,000 jobs in January, the most in nine months, and an average of 201,000 jobs per month for the past three months.
On Wednesday, the Federal Reserve reported factory output got a vigorous start this year and ended 2011 with the fastest growth in five years. Almost 13 million people, or 8.3 percent, remain unemployed. A reported reason why the unemployment rate has fallen is because many people have stopped looking for work and the government counts people unemployed, only if they are actively in search of employment. The country has a long road ahead before it can fully recover from the injuries of the Great Recession.
