Unemployment claims down

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Weekly unemployment claims nationwide fell by 38,000 to 550,000, the Labor Department reports today.

Claims remain well above last year’s level of 450,000 for the same period.

If the trend continues, it’s the kind of news that might give a small psychological boost to the housing market. Financially stable buyers sitting on the fence might be more confident the economy is recovering.

A substantive boost to housing from an improving job market is likely much further off. Employment is typically a lagging indicator in a recovery. New hiring doesn’t generally occur on a noteworthy scale until a recovery is well underway, and unemployment has bottomed for some time.

-- Peter Y. Hong