Including: Declining Trade Gap and Steeper Jobless Claims Drop, plus Global Hiring Outlook and Economically Stressed States.

Trade Gap Shrinks in July
The United States trade deficit fell to $42.8 billion in July, down 14 percent from $49.8 billion in June, marking a significant reverse of a widening trend in recent months, according to the U.S. Department of Commerce on Thursday. Exports rose $2.8 billion to $153.3 billion, the highest level since August 2008, and imports fell $4.2 billion to $196.1 billion.

The July goods deficit dropped to $55.2 billion, a $7 billion decline from the previous month, while the services surplus remained relatively unchanged at $12.5 billion. Goods exports climbed to $107.7 billion in July and goods imports fell to $162.9 billion. Both services exports and services imports remained mostly unchanged at $45.6 billion and $33.2 billion, respectively.

According to the Commerce Department, the significant monthly increase in exported goods was due to large sales gains for jetliners, industrial machinery, computers and telecommunications equipment.

The major boost in exports signaled strengthening demand in manufactured goods and is expected to improve the broader outlook for the U.S. economy in the current quarter.

“The trade deficit had widened in previous months, with an especially sharp uptick in June,” the Wall Street Journal explains. “The July report is prompting some economists to recalculate upward their expectations for third-quarter growth — reflecting the fact that more of what the U.S. consumes will likely be produced on its own soil.”

So far this year, the trade deficit has reached an annual rate of $495.1 billion, 32 percent above the total for 2009. Although the deficit is forecast to resume widening, international sales of U.S.-produced goods may make a significant difference for the long-term economic future.

“While the deficit is expected to increase this year, economists are hoping that an improving global economy will boost demand for U.S. exports,” the Associated Press reports. “So far, manufacturing has been a standout performer in what has been a sub-par economic recovery.”

Jobless Claims Drop More than Expected
The number of Americans filing new claims for jobless benefits fell faster than expected, according to the latest weekly data. In the week ending Sept. 4, the number of initial claims for regular state unemployment insurance benefits fell by 27,000 to 451,000 (seasonally adjusted), the lowest level in almost two months, the U.S. Department of Labor reported last week.

Economists polled separately by MarketWatch and Bloomberg News had expected the number of new jobless claims to be 470,000.

“The latest figure was better than most economists’ expectations of 470,000 new claims, sparking optimism that recent negative trends were just a blip on the road to recovery,” Agence France-Presse reports. “But that optimism was tempered with caution and few economists were ready to declare victory.”

The total number of people claiming unemployment benefits was largely unchanged at 4,478,000, a decline of 2,000 people.

“The data released Thursday at least provided some hope that economic growth will endure,” the Associated Press reports. “The sharp drop in claims for jobless aid suggested fewer companies are resorting to layoffs.”

Together, the declining new-jobless claims and the narrowing trade deficit “eased summertime fears that the economy might be on the brink of another recession,” according to a separate AP report.

Emerging Markets to Lead the World in Hiring
Hiring expectations in emerging markets continue to outpace the rest of the world, according to Manpower Inc.’s latest Employment Outlook Survey results, released last week. Employers in China, Taiwan, India and Brazil reported the strongest fourth-quarter job prospects.

“We’re seeing a multi-speed recovery in the global labor market with talent demand in high gear in many of the emerging markets we survey,” Manpower Chairman and CEO Jeffrey Joerres said in an announcement of the findings. “Other markets, such as the U.S. and Japan, are still moving forward but can’t seem to get out of first gear.”

Although hiring plans in the U.S. are stronger than they were a year ago, a cautiously optimistic hiring pace reported for the next three months indicates economic concerns continue to weigh on the minds of American employers. “U.S. job seekers can expect to find the most opportunities in the wholesale and retail trade and mining sectors in the quarter ahead,” the Wall Street Journal reports (subscription required).

Manpower’s data show that employers in 28 of 36 countries and territories expect positive hiring activity in the fourth quarter, with those in five reporting negative hiring expectations — down from 12 countries reporting a negative outlook 12 months ago. Globally, employers in 32 countries and territories reported a stronger year-over-year outlook.

Notably, forecasts from Chinese, Swiss and Taiwanese employers are the most optimistic since Manpower began polling there, while Greece, Italy, the Czech Republic, Spain and Ireland reported the weakest hiring plans for the upcoming quarter.

The Most Economically Stressed States
Although Americans across the country continue to struggle with financial uncertainty, elevated unemployment rates and other economic hardships, some regions have been harder hit than others, according to a recent study by the Associated Press.

Taking into account key economic indicators such as unemployment, foreclosures and bankruptcies, the AP’s latest Economic Stress Index found that 42 percent of U.S. counties are under stress. Although economic stress eased from June to July in roughly 54 percent of the nation’s counties and in 24 of the 50 states, the average county’s stress level remained unchanged from the previous month.

“Nationally, unemployment, foreclosure and bankruptcy rates didn’t budge from June,” the AP reports. “Yet the economic pain varied among localities, depending on their economic bases. Stress eased in counties whose workforces lean toward areas like agriculture, mining, wholesale trade and finance.”

Nevada, with a stress score of 22.1, was found to be the most stressed state in the U.S. in July. One out of 4.5 Nevadans in July was either unemployed, facing home foreclosure or had filed for bankruptcy. Among the states with the highest stress scores, Nevada was followed by Michigan (17.44), California (16.88), Florida (15.94) and Arizona (15.41).

According to AP’s findings, the healthiest state in the country in July was North Dakota, with a stress rating of 4.24. The next best were South Dakota (5.05), Nebraska (5.92), Vermont (6.29) and Wyoming (7.13).