The percentage of total Americans who filed for unemployment benefits fell in the previous week, indicating towards prolonged labor market strength and firming economic growth.
A Labor Department analyst said there were no out of the ordiinary factors influencing last week's data.
The four-week average of continuing claims dropped down 64,500 between the September and October survey periods, which implies that the unemployment rate could fall this month from 5 percent in September.
http://www.cnbc.com/2016/10/27/us-weekly-jobless-claims-oct-22-2016.html
Its good to see data supporting the fall of the unemployment rate within the country which shows strengthening of the labor force. I also found it interesting that there was a lower percentage of people filing for unemployment benefits which is a good sign for the labor market and also economic growth.
ReplyDeleteI agree with Ryan that the decreased level of unemployment benefit claims implies growth for the economy, but am curious what too low of levels for unemployment result in. As we have recently seen, when interest rates, and inflation are too low, they monetary and fiscal policy are enacted to bring these to levels we consider optimal. Is this the same for employment levels?
ReplyDeleteI agree that a decrease in the unemployment benefit claims implies that there is a growth in the economy. However, if this falls too low, this could also mean a drop in the unemployment rate. Right now it is at a solid percentage with just enough unemployment. If too many people get jobs the economy could see some struggles in the future
ReplyDeleteThe article is very interesting because it shows with some data to support it that the unemployment rate could fall, but as we have seen it is in 5% right now and that is not a number that is considered high. It would be interesting to know if it is actually going to fall or instead people is going to start to get better jobs and salaries are going to go up as employers are going to try to get the best workers by raising the salaries.
ReplyDeleteIt is good that unemployment claims are down, and that the data is said to be reliable (no out of the ordinary factors). Hopefully the drop in unemployment is small and healthy for the economy, because a drastic drop could cause a great problem in the long run.
ReplyDeleteI'd venture to guess this outcome is due to states initiative to cut down on unemployment insurance.
ReplyDelete