U.S Jobless claims have been incrementing with the passage of time. Year 2015 closed with an admonitory note. As per the Labor Department report, increment ratio was more that than expected – 287,000 for a week through December 26; the highest since July 2015.
Last week estimates have shown a large number of jobless claims by American people – a clear cut picture of the global market to be facing ups and downs due to job cuts and rising strength of US Dollar. Surely the bullish ratio does not refer to the labor market’s outlook to have had suddenly switched from positive to negative. Nonetheless, after more than six years of economic growth, the phase is circulating to depict fading signs.
In year 2015, the U.S labor market burnt up – that reason was enough for Federal Reserves to higher up rates earlier this month – for the first time in decade – a milestone in the U.S. recovery from the 2007-09 recession.
“We do have to discount the heightened volatility we have around this time of the year. When the dust settles, we’ll see claims drop back down. There will be continued slow improvement in the labor market.” – Chief economist at Action Economics LLC, Mike Englund
Growth momentum is still accelerating with strength – so no such arguments could be put forward in this regard on the basis of today’s annual economic report. However, new filings for unemployment benefits may have target a bottom earlier this year and are now are at hike.
The jobless claims show no signs of improvement in market following year 2016 – infact the rate plunges further from 5%. However, after dropping sharply for years, jobless claims have appeared to stabilize since the middle of 2015. Good news is that the annual economic report still points to bearish recession risk.
