What Recovery? Unemployment Claims Rise By 10,000 In One Week
Unemployment in the United States rose rapidly last week, as 10,000 people unexpectedly filed for unemployment benefits.
This isn’t necessarily a reason to panic, however, as the number is not nearly high enough to potentially affect the shift in the job market.
According to a statement from the Labor Department yesterday, this brings the seasonally adjusted claims to 354,000.
The four-week moving average is up slightly due to the new claims, up 6,750 to 347,250.
Still, the United States is not in a terrible position as far as unemployment is concerned, with many European nations suffering from double-digit unemployment rates.
The United States unemployment is below 8%, a number that seemed to be a distant fantasy just a couple of years ago.
U.S. unemployment has fallen to a four-year low of 7.5%, down from the 10% it reached in October 2009.
The economy has shown signs of resiliency that may lead to the Federal Reserve finally scaling back its monetary stimulus, possibly as early as the end of the year.
Consumer confidence is also the highest it has been in the past 5 years, showing growth in the retail sectors and various financial indexes are at, or close to, all-time highs.
These unemployment claims, while slightly unexpected, are most certainly not the end of the world and most likely not a sign of a trend to follow in the near future.