Unemployment Aid Applications Drop to 9-Month Low

Keynesian forecasters crushed again.

The number of Americans applying for unemployment benefits fell last week to the lowest level in nine months. Keynesian economists, like Paul Krugman, in very short order are going to look absurd calling for, only weeks ago,even higher levels of government spending.

The Labor Department reported today that weekly applications dropped by 23,000 to a seasonally adjusted 381,000. That’s the lowest number of applications since late February.

The four-week average, a less volatile measure, fell for the ninth time in 11 weeks to 393,250. That’s the lowest average since early April.

Keyensians will be finally turning bullish in the coming weeks, since Keynesian econometricians tend to believe that applications that drop below 375,000 — consistently — tend to correlate with a steady decline in the unemployment rate.