Unemployment claims up, but jobs market remain strong |
The number of Americans filing for unemployment benefits increased by 14,000 to 217,000 in the week ending January 11th, according to the Labor Department. Economists had expected jobless claims to rise to 210,000. However, despite this rise, layoffs remain historically low, with the total number of Americans receiving unemployment benefits dropping by 18,000 to 1.859m. The four-week average of claims, which softens some of the week-to-week volatility, dipped by 750 to 212,750. Ryan Sweet, Chief U.S. Economist at Oxford Economics, said the rebound by jobless claims "doesn't raise a red flag," noting: "New filings remain comfortably below our estimate of the breakeven level, or that consistent with no monthly job growth." He added that they "could increase over the next couple of weeks because of the wildfires. Our preliminary estimate is that the wildfires will reduce January nonfarm employment between 20,000 and 25,000." |
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