The U.S. labor market hit a new positive path. Last week, there were fewer citizens who filed applications for U.S. unemployment benefits. This sector showed so little activity that it hit a 17-year low. These are good signs that predict a reinforced labor market. The Federal Reserve can take advantage of this situation and increase interest rates starting with next month.
In One Week, Jobless Claims Dropped to 238,000
On Thursday, the Labor Department revealed some stats that indicate a more empowered labor market. Within the week that started on 22 April, there were 19,000 fewer jobless claims which ended up being a modest total of 238,000 in seven days. As a consequence, this week interrupted a determined trend that increased such applications considerably during the prior two weeks.
However, this new improvement of the labor market might not be based on objective factors. Recent holidays such as Easter or spring break might have influenced data. As people are usually spending more time with their families or relaxing during this period of time, weaker jobless claims might be just a temporary effect. Moreover, it was difficult for analysts to measure data by leaving seasonal implications aside.
Labor Market Has a Weak 4.5% Unemployment Rate
The fact that claims were not higher than 300,000 is a sign which is usually associated with a reinforced labor market. This trend lasted for 113 weeks which is the longest such period since 1970. However, back days, there were fewer players in the labor market which indicate that today’s department is in a better shape than ever. To point that out, the unemployment rate hit a 4.5% threshold which is the lowest point over the past ten years.
Moreover, the number of first-time applications for jobless claims rallied in smaller numbers for the month of April than for March. The aid services dropped to 98,000 which is the smallest number in 10 months.
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