Increase in unemployment benefit claims

18 January, 2014

The number of citizens who are seeking the unemployment benefits has increased to 68 thousand in the last week. This accounts to total of 368 thousand unemployment benefit claims. The department of labor announced that the four week average rose to 328 thousand.

Positive sign

This four week increase is very close to the pre-recession level and thus, it is considered as a positive sign. This increase is due to the holiday bump and is viewed as a sign of revival.

Seasonal adjustments

Economists are trying to track whether this increase is a trend, due to the seasonal adjustments or whether it last longer. There is a decline in the number of unemployment aids increase in the past year, which indicated that the number of Americans losing their jobs has declined. This temporary hike can be increased by the seasonal adjustment or the trends may be reversing. Economists are analyzing to determine whether it is the false seasonal adjustments or just a positive sign for job gains or a trend change. There is a weekly increase of 6000, which is alarmingly high increase rate, which needs to be tended as soon as possible.

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