Jobless claims have fallen again, and that continues to bring hope that economic recovery could by on the way. Indeed, the job market is an important part of the economy, since it affects so many other aspects of the economy. Consider: Consumer spending and whether or not people can buy homes are both tied to employment data. If jobs are being lost, it is difficult for people to spend money at stores and make their mortgage payments.

The data, though encouraging, still illustrates that we have a ways to go, reports CNN Money:

“We’re still talking about declining at a slower pace, not outright job growth,” said Tim Quinlan, analyst at Wells Fargo, who noted initial claims were at their lowest level since July.

Quinlan added that claims levels are well off the highs seen earlier this year amid mass layoffs, but they remain “roughly double what they would be in an expansionary economic environment.”

The declining pace continues to highlight the fact that this will be a slow economic recovery. Things will not change overnight, and we will probably not see a dramatic “V” shaped recovery.