RECOVERY FROM WHAT?:

Jobless Claims Drop in Sign of Recovery (AP, 08.05.2004)

The number of new people signing up for unemployment benefits dropped last week, a hopeful sign for the job market recovery.

The Labor Department reported Thursday that new applications for jobless benefits declined by a seasonally adjusted 11,000 to 336,000 for the week ending July 31. It marked the lowest level since the beginning of July and was slightly better than some analysts were expecting. They were forecasting claims to fall to around 340,000 for last week.

New claims have bounced up and down in recent weeks, with much of the volatility associated with the impact of temporary shutdowns at auto plants to retool for new models, something that's done each year. Even so, the long-term trend in claims shows improvement.