According to the Labor Department new claims for unemployment benefits are decreasing, and economists take this as a sign that the labor market is stabilizing. Companies seem to be slowing the pace of layoffs as they feel more confident about economic recovery. The rise in September payrolls can be taken as another sign that the labor market is picking up.
See "ECONOMY: New jobless claims fall, fueling optimism", Tribune news services, Chicago Tribune, October 23, 2003