Unemployment Numbers Finally Shrinking

As any economist would tell you, any nationwide financial crisis will probably be accompanied by a rise in unemployment levels, and he would not have to think far back to offer an example. Although today’s financial crisis may not be close to ending, new evidence shows that unemployment may finally be shrinking rather than growing.

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According to figures released by the Labor Department, the number of unemployment insurance applications has fallen by 4,000 to 621,000 from last week to this week. These numbers correlate with Labor Department predictions. Also, the Labor Department has also noticed a rise in worker productivity, a larger increase than expected.

Analysts seem to agree that increased worker efficiency will lead to higher profits and, consequently, fewer job cuts. These reports show that companies are cutting jobs faster than necessary to get the economy back on track and that unemployment numbers should decrease as the effects of the job cuts finally start to show.