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WASHINGTON – Jobless claims for the week ending May 13 fell to their lowest level since 2001, but left economists watching closely to see whether they can find a reason for the decrease. The 4,000 claims fell to 1,815,000, which was the lowest level since June 15, 2001.

This was expected because the number of people continuing on jobless benefits fell to 4,826,000. Another interesting aspect of the report is that the Continuing Claims are off nearly 70% from a peak reading in February of 8,097,000 just before the shutdown of the U.S. government. The numbers are still higher than in early-May, just before the shutdown, but the sharp decline has the economists wondering whether the rebound will stick.

“It is too early to conclude that recovery is in sight,” said Mark Zandi, chief economist at Moody’s Analytics. “The unemployment rate is close to full employment, but the labor force is shrinking.”

So where is this shutdown going?

The National Bureau of Economic Research, in a decision that was released on Tuesday said that the economic shutdown will stretch into July and August. The decision is based on fact that the economy, and the employment situation, is changing rapidly.

The impact on the stock market will be negligible this week, but the labor market is expected to start picking up again as soon as the government re-opens.

At first, it was expected that both the House and the Senate would quickly pass a continuing resolution by June 8, which would prevent another shutdown. But after the House passed the measure last week it was amended to include budget cuts. Now the Senate will have to vote on the spending cuts and the continued government funding.

Economic Advisors, the nation’s top economic fore

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