According to the recent labor market data, jobless claims in U.S. had fallen to its lowest level in the last five weeks. The market experts are saying that this indicates a strong improvement in the U.S. labor market.
According to the economists, the strong job market data indicates that the U.S. economy is resurging and becoming strong. It was also suggested that the recent slowdown in the economy is a temporary situation. According to the market experts, the recent slowdown is caused by the harsh weather, labor dispute in the West Coast ports and strong Dollar.
According to a released data by the Labor Department on Thursday, the month of March ended with the unemployment benefits dropping from 9,000 to a seasonally adjusted 282,00021 in 21 states. The Labor Department said, it is the lowest since mid-February. According to Cheng Chen, an economist at TD Securities in New York, “The constructive trend in claims in recent weeks suggests that the positive labor market trend is continuing.” It was also suggested that, the four week moving average of claims, is a better measure for the labor market trends. But financial market analysts said, financial market is little moved by the labor market data released on Thursday.
According to the economist, the strong job market data is a stark contrast to the, continuous low data reports from the businesses of manufacturing, home building, consumer spending and trade. It was also suggested by the economists that the slow growth and persistence of low inflation may force the Federal Reserve to increase the interest rate later than sooner this year. The Feds have kept the short term interest rates near to zero since December 2008.
According to the released data, the U.S. economy had added 295,000 jobs in February. Since 1994 for the 12 straight months the U.S. employment market had a gain above 200,000. According to Thursday`s report, the week ended in March’14 with the number of people still receiving benefit after an initial week of aid had fallen 6,000 to 2.42 million.