Washington, January 07: Claims for unemployment benefits in the US have risen above economists’ expectations, hitting 409,000 for the week ending January 1, the Labor Department says.
Most economists did not expect the new claims to be more than 405,000, AFP reported on Thursday.
Claims are near the levels that were seen back in 2008 before the economic crisis, the department said. Around 8.8 million Americans claim unemployment benefit at present.
Despite the sporadic comments made by some experts that the US economy is growing even in face of the current rise in jobless claims, growing optimism is moderated by news of below-forecast December sales at top retailers. Consumers who would overindulge right after Thanksgiving changed into bargain-hunters. A post-Christmas blizzard also impairs the sales.
“Given continuing evidence that the pace of growth is picking up, we should continue to see improvement in the employment picture in the quarters ahead,” said Jim Baird, chief investment strategist at Plante Moran Financial Advisors in Kalamazoo, Michigan. “Nonetheless, it is still going to take years to fully restore the jobs market to pre-crisis conditions given the magnitude of job losses during the recession and the persistently high unemployment rate.”
———Agencies