While new claims for jobless benefits increased by 18,000 to 409,000 last week, the four week average, fell to a 2 and a half year low. Economists say that getting claims below 400,000 is an important sign for recovery, but also pointed out that despite the spike in claims last week, all signs are pointing to economic growth. The Labor Department's report on employment in December will be released on Friday, and is expected to show a gain in jobs in the private sector. Many caution that despite signs of recovery, it will take years for employment levels to go back to where they were before the economic crisis.
See "Jobless claims up, underlying trend still down", Lucia Mutikani, Reuters, January 5, 2011