US jobless filings in line with job growth
Source: Agencies |
February 1, 2013, Friday
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Print Edition
Print Edition
THE number of Americans filing new claims for unemployment benefits last week stayed in a range consistent with job growth and incomes rose in December by the most in eight years, mildly positive signs for a still-fragile economy.
The data point to some underlying momentum in the economy despite a surprise contraction in gross domestic product during the fourth quarter, which largely came from temporary factors.
Last week, initial claims for state jobless benefits rose 38,000 to 368,000, the Labor Department said yesterday.
The increase follows a week where new claims were at their lowest in five years and still points to an economy where employers are adding jobs, albeit at a lackluster pace.
"It's still consistent with modest employment growth," said Sam Bullard, an economist at Wells Fargo Securities in Charlotte, North Carolina.
Claims have been very volatile last month, dropping sharply in the week ended on January 12 and maintaining the trend in the following week. That was largely because the model used by the department to smooth out the seasonal variations has been unusually generous during the first three weeks of January.
The four-week moving average for new claims, a better measure of labor market trends, gained 250 to 352,000, suggesting a steady improvement in labor market conditions.
In a separate report, the Commerce Department said incomes rose 2.6 percent in December. That was the biggest increase since December 2004 and well above analysts' expectations for a 0.8 percent gain.
However, much of the gains in personal incomes over the last two months of 2012 have been due to special dividends and accelerated bonuses to beat tax increases that were due to begin last month.
The big rise in incomes suggests total consumer spending power entered the new year on a stronger footing.
The data point to some underlying momentum in the economy despite a surprise contraction in gross domestic product during the fourth quarter, which largely came from temporary factors.
Last week, initial claims for state jobless benefits rose 38,000 to 368,000, the Labor Department said yesterday.
The increase follows a week where new claims were at their lowest in five years and still points to an economy where employers are adding jobs, albeit at a lackluster pace.
"It's still consistent with modest employment growth," said Sam Bullard, an economist at Wells Fargo Securities in Charlotte, North Carolina.
Claims have been very volatile last month, dropping sharply in the week ended on January 12 and maintaining the trend in the following week. That was largely because the model used by the department to smooth out the seasonal variations has been unusually generous during the first three weeks of January.
The four-week moving average for new claims, a better measure of labor market trends, gained 250 to 352,000, suggesting a steady improvement in labor market conditions.
In a separate report, the Commerce Department said incomes rose 2.6 percent in December. That was the biggest increase since December 2004 and well above analysts' expectations for a 0.8 percent gain.
However, much of the gains in personal incomes over the last two months of 2012 have been due to special dividends and accelerated bonuses to beat tax increases that were due to begin last month.
The big rise in incomes suggests total consumer spending power entered the new year on a stronger footing.
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