The latest numbers are out from the US government and show that the number of people who filed for unemployment claims in early April fell to 3,741,000 - the lowest number in four months and a decrease of 4,000 from the previous week. For the month of March, according to the US Bureau of Labor Statistics, the total number of claims filed came in at 282,000 - a decrease of 2,000 from the previous month. The total unemployment rate for March came in at 6.6% and is the same as the January and February rate. The US average is 5.5%. The number of unemployed Americans is the lowest since February 2009. The decrease in jobless claims for the month is attributed to a large reduction in benefits applications. In addition, initial claims for benefits from the week ended April 7 fell by 20,000 from the prior week to 3.6 million. For the week ended March 28, the number of new claims for unemployment benefits was 304,000, an increase of 10,000 from the previous week's number. The 4-week moving average for new unemployment claims improved to 345,000. The new jobless claims figure is the lowest since the week of January 26, when the number was 304,000. At the end of March, 14.8 million people were seeking work or actively seeking work and 6.3 million were considered to be part of the labor force. This means that the so-called unemployment rate is 10% down from its peak of 10.6% in late 2010. The number of new jobs created during March came in at 1,600,000 - well above estimates and an improvement on the prior month, which saw increases of 140,000 in non-farm payrolls. Average hourly earnings during March were at $24.44 - 1.2% increase from a year earlier, after having been little changed for two straight months. The US economy has been on the mend as the number of people seeking jobs fell and as the number of those working rose. Meanwhile, the April labor force survey found that the US unemployment rate rose to 6.5% from 6.1% in March, and that the number of unemployed rose to 12.5 million in April from 12.4 million in March. The total number of employed also declined by 581,000 to 155.5 million. The jobless rate has been at a multi-year low during the first three months of 2012 and the unemployment numbers are considered to be in line with what economists and analysts had predicted earlier in the year. The figures indicate that the current pace of job loss will slow from the average monthly rate of 550,000 for the 12 months of 2011. On the other hand, according to the April CPI, consumer prices for food and beverages rose by 0.3% in the previous month. The price of a loaf of bread rose by 2 cents, milk by 1 cent and gasoline by 1 cent from March. Meanwhile, energy prices rose by 1% from the same period in March while prices for rents and owners' equivalent rent increased by 0.4%. The CPI has now increased for 5 straight months. While this is a good sign, it is important to note that inflation is still very low and that prices are expected to remain low for some time. The price of a barrel of oil (average price for the first 3 months of 2012) has fallen by 20% in US dollars from its March 2011 peak. At the end of March, oil was priced at $91.92 per barrel, compared to $115.54 at the end of March 2011. With oil prices at such low levels, some U.S. businesses that import energy face difficult choices regarding how much they can pass on to their customers. While the US economy has been experiencing slow recovery, the number of workers seeking jobs continues to fall. April saw an increase of 3,000 in the number of people quitting their jobs and seeking new jobs. This is an encouraging sign as it implies that companies are adding jobs as they anticipate improving prospects. The number of job losers - people who have lost their jobs and do not find new jobs within the specified period - fell by 6,000 during the month. This trend bodes well for future job seekers. Overall, there are some signs that the US economy is recovering and that job losses may be slowing. At the same time, US consumers are seeing their pockets gradually becoming fuller as a result of low energy prices and falling gasoline prices. While it is good to see that more workers are quitting their jobs, it will be hard for the US economy to really turn the corner if unemployment continues to decline. If this rate continues, it will mean that more people will be spending money and there will be a corresponding increase in economic activity and in job growth. Economists have suggested that a rise in unemployment rates may lead to less people spending on non-essential goods and services. This will mean that disposable income will be lower, forcing businesses to raise prices of many goods and services. A slower increase in employment numbers will also slow the recovery of the US economy. A more gradual recovery may also lead to better long-term job growth since it means that fewer people are losing their jobs each month. At the same time, it remains to be seen whether Americans can keep up their spending as they spend on many other essential items. At some point, inflation may again become a problem. This will be important for the US economy as well. If prices of essential goods and services start rising, it will be a sign that the labor market is getting stronger and that the recovery has entered a second stage. If not, this may indicate that the US economy will have to go through some more difficult times. That would delay the pace of recovery and make it difficult for companies to find workers, making it difficult for companies to expand their businesses and to make new investments. However, the good news is that the US economy is getting better and the labor market is slowly recovering. While the Federal Reserve Board is expected to keep interest rates low for the next few months, the central bank has said that interest rates will continue to rise as the recovery becomes more sustainable. In the meantime, despite slower increases in employment numbers, some analysts are optimistic that job losses may soon slow down. This is partly because there are no major shocks from the external economy, meaning that job losses can be gradual. There will also be an improvement in the US stock market that should put additional pressure on unemployment numbers. At the same time, consumers are also spending as they benefit from lower energy prices, the drop in gasoline prices and the rise in consumer confidence. Of course, the US economy is not out of the woods yet, but with time it seems that the pace of recovery is improving. A more gradual economic recovery will also mean that unemployment will start declining faster than previously thought. In turn, this would indicate that the labor market is getting stronger and the US economy may be reaching its nadir. While it is still too early to predict how long it will take to return to a full employment economy, this is probably not going to happen for a while. At the same time, with fewer people looking for jobs, there are fewer workers to create jobs, which slows the pace of recovery. The above data on jobless claims, initial claims and the unemployment rate may seem to indicate that the US economy has already recovered but this is not the case. While the pace of recovery is slower than before, the US economy is still showing signs of recovery. However, it is also true that the recession was not as painful as in other countries around the world. This makes the US economy especially fragile in the current economic environment and may make a rebound difficult to achieve. This material is provided for informational purposes only and is not intended to be relied upon as investing advice or as a recommendation