At the start of the year, employment rate showed to be a positive outlook for 2016 after indicating that the last quarter of 2015's numbers were bright. However, Americans were still filing for unemployment benefits.
The number of Americans filing for unemployment rose last week but the rate coming in remained within a level that still indicated that the labor market remains healthy.
Initial claims for unemployment increased by 7,000 last week-ending January 9 which brings the total number to 284,000. The estimate was initially 275,000. The number is still below the 300,000 mark which is connected with strong labor market conditions. While having a healthy market available, the Labor Department reported that this is the 45th consecutive week that remains below the mark.
Ian Shepherdson, chief economist at Pantheon Macroeconomics, forecasted substantial volatility in claims during the first few weeks of the year but said the downward trend is still on track. Citing that claims are unpredictable because the seasonals are difficulty to track after temporary jobs during the holidays are terminated.
Jesse Hurwitz, an economist at Barclays in New York explained that the conditions are still good as claims are at a low level from a historical perspective.
The labor market was not entirely affected by the weakness in the economy and nonfarm payrolls that surged back in December.
The United States ended 2015 with an addition of 292,000 jobs during December which showed to be the second best year for employment, after 2014.
Economic growth was hit by a strong dollar, a slowing global demand, spending cuts by energy businesses and constant reparations and efforts by businesses to thin out the global inventory glut.
Prior to last week, unemployment benefit claims reported to have risen to 29,000 in the week-ending January 2. According to the Federal Reserve, the unemployment rate is still at 5.0% for the 3rd month in a row which is close to the level of full employment.
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