U.S. Jobless Claims Bounce Off Three-Year Low, Rise to 381,000
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One sign which may suggest the U.S. labor market is finally beginning to recover was Thursday's jobless claims number which remained below the all-important 400,000 level.
Although data from the Labor Department showed a modest rise in weekly first-time applications from 366,000 to 381,000, the four-week average dropped to 375,000 last week, the lowest level since June '08. The Street was expecting a jobless claims reading of 375,000. Claims for the week ended December 24th marked the first weekly increase since the beginning of December.
The prior week reading (ended December 17th) was revised higher from 364,000.
Many analysts feel the labor market is improving and expect a continued showing of gains. On the other hand, with the political race heating up, many politicians may disagree.
A Labor Department spokesperson said there was nothing unusual in the state-level data last week. Claims were estimated for six states and the District of Columbia, however, as the holiday-shortened week prevented offices from completing their counts.
Continuing jobless benefits increased by 34,000 to 3.6 million for the week ending December 17th. Notably, this figure doesn't include Americans receiving extended benefits under federal programs.
On a state-by-state breakdown, 23 states and territories reported an increase in claims, while 30 reported a decrease.
Economists expect January 6th payroll figures to show the U.S. economy added 150,000 nonfarm and 160,000 private sector jobs in December, although this figure will include seasonal positions. Expect the financial services sector to show a decline in staffing.
Although data from the Labor Department showed a modest rise in weekly first-time applications from 366,000 to 381,000, the four-week average dropped to 375,000 last week, the lowest level since June '08. The Street was expecting a jobless claims reading of 375,000. Claims for the week ended December 24th marked the first weekly increase since the beginning of December.
The prior week reading (ended December 17th) was revised higher from 364,000.
Many analysts feel the labor market is improving and expect a continued showing of gains. On the other hand, with the political race heating up, many politicians may disagree.
A Labor Department spokesperson said there was nothing unusual in the state-level data last week. Claims were estimated for six states and the District of Columbia, however, as the holiday-shortened week prevented offices from completing their counts.
Continuing jobless benefits increased by 34,000 to 3.6 million for the week ending December 17th. Notably, this figure doesn't include Americans receiving extended benefits under federal programs.
On a state-by-state breakdown, 23 states and territories reported an increase in claims, while 30 reported a decrease.
Economists expect January 6th payroll figures to show the U.S. economy added 150,000 nonfarm and 160,000 private sector jobs in December, although this figure will include seasonal positions. Expect the financial services sector to show a decline in staffing.
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