Just as a spate of positive US data got us feeling all economically optimistic the most recent reports have shown an increase of 46,000 in US jobless claims after the previous period’s revised near five-year-low.
Although economists involved in a Bloomberg survey did predict that claims would rise, this jump to 388,000 was far higher than their 365,000 prediction and substantially higher than the previous figure of 342,000.
A senior economist with Societe Generale was quoted as saying: ‘when you get to the turn of a quarter the seasonals jump a lot.’ Brian Jones went on to say that the ‘labour market is getting better, but at a glacial pace. Claims are going sideways.’
A spokesman for the Labour Department commented on the volatility of the figures, asserting that in one state the succession of high increases in adjusted claims recorded at the outset of the quarter appears to have shifted by a week. He also hinted that that in all likelihood tepid hiring is to blame for continually weak payrolls as the amount of firings had barely fluctuated.
The more stable four-week moving average for jobless claims also increased, albeit far less dramatically, rising from 364,750 to 365,500.
Although today’s data appears negative, the report also showed a 29,000 drop in the amount of people continuing to receive jobless benefits.
It also can’t really detract from the positive US employment news of recent weeks, including September’s solid increase of 114,000 in nonfarm payroll employment and unemployment finally dipping below 8 per cent – hitting a 3-year best of 7.8 per cent in the process.
As of 14:55
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