Weekly initial jobless claims (which reflects weekly firings) for the week of September 6 reached 315,00, surpassing the Bloomberg projected estimation of 300,000. This is the highest reading since June 28, though analysts admit the data is difficult to adjust due to the Labor Day holiday weekend. This two month high comes at a time when claims have been remaining close to pre-recession lows, thanks to the growing strength of the labor market. According to Omair Sharif, economist at RBS Securities Inc.,
Claims have been running around 300,000 for a couple of months now, so I would not regard this as a deterioration in labor demand… It was during Labor Day holiday, so odds are that there are some seasonal adjustment problems. Underlying labor demand remains very firm, and certainly that is going to help consumer spending going forward.”
The unemployment rate for those eligible for benefits remained at 1.9 percent.
Read more here- “U.S. Jobless Claims Hit Two-Month High, Breaking Steady Decline,” (Jeanna Smialek, Bloomberg)
Olivia is a graduate of Villanova University where she studied Economics and History, minoring in Gender and Women's Studies. She also has experience working with federal legislatures on health care policy, women's issues, and Internet safety.