US / Unemployment Benefits / New data are reassuring as jobless claims fall to 5-year low

Tow weeks ago, Two out of three employment-related reports were positive and only 28,000 persons were saying they have a job in the latest monthly labor market report. Last week claims data reflected those weaknesses, but new data are reassuring.

SEASONALLY ADJUSTED DATA

In the week ending January 12, the advance figure for seasonally adjusted initial claims was 335,000, a decrease of 37,000 from the previous week’s revised figure of 372,000. The 4-week moving average was 359,250, a decrease of 6,750 from the previous week’s revised average of 366,000.

The advance seasonally adjusted insured unemployment rate was 2.5 percent for the week ending January 5, an increase of 0.1 percentage point from the prior week’s unrevised rate. The advance number for seasonally adjusted insured unemploymentduring the week ending January 5 was 3,214,000, an increase of 87,000 from the preceding week’s revised level of 3,127,000. The 4-week moving average was 3,195,750, a decrease of 6,000 from the preceding week’s revised average of 3,201,750.

Choosen excerpts by Job Market Monitor from

via ETA Press Release: Unemployment Insurance Weekly Claims Report.

Weekly jobless claims fall to 5-year low

The applications data can be uneven in January. Job cuts typically spike in the second week of the month as retailers, restaurants and other companies lay off temporary workers hired for the winter holidays.

Last week, the layoffs weren’t as large as expected, a department spokesman said. That caused a steep drop in the seasonally adjusted data.

Overall, applications remain at a level that suggests employers are hiring at a slow but steady pace. Applications fluctuated between 360,000 and 390,000 for most of last year. At the same time, employers added an average of 153,000 jobs a month.

That’s just been enough to slowly push down the unemployment rate, which fell 0.7 percentage points last year to 7.8 percent.

Employers added 155,000 jobs last month, nearly matching the average for the year. December’s steady job gain suggests employers didn’t cut back on hiring in the midst of the debate over the tax and spending changes known as the fiscal cliff. Many economists feared that the prospect of higher taxes and steep cuts in federal spending would cause a slowdown in job gains.

That’s a good sign, since more budget showdowns are expected. Congress must vote to raise the government’s $16.4 trillion borrowing limit by sometime between mid-February and early March. If not, the government risks defaulting on its debt. Republicans will likely demand deep spending cuts as the price of raising the debt limit.

Choosen excerpts by Job Market Monitor from

via Weekly jobless claims fall to 5-year low – CBS News.