With the release of the carefully enjoyed regular monthly tasks report looming, the Labor Department released a report on Thursday revealing an unforeseen uptick in novice claims for U.S. welfare in the week ended December 30th.
The report said preliminary jobless claims edged up to 250,000, an increase of 3,000 from the previous week’s revised level of 247,000.
The increase surprised economists, who had expected unemployed claims to drop to 240,000 from the 245,000 originally reported for the previous week.
“We wouldn’t check out too much into that increase, however,” stated Paul Ashworth, Chief U.S. Financial Expert at Capital Economics. “Claims are notoriously volatile at the very best of times and especially around vacations.”
“The bottom line is that claims remain at an abnormally low level, providing more proof of labor market strength,” he added.
The less volatile four-week moving average rose to 241,750, an increase of 3,500 from the previous week’s revised average of 238,250.
The Labor Department kept in mind claims taking procedures continue to be interrupted in the Virgin Islands, while the claims taking procedure in Puerto Rico has actually still not gone back to normal.
The report said continuing claims, a reading on the number of people receiving ongoing unemployment help, fell by 37,000 to 1.914 million in the week ended December 23rd.
The four-week moving average of continuing clams still crept up to 1,922,500, a boost of 750 from the previous week’s revised average of 1,921,750.
On Friday, the Labor Department is due to launch its more closely viewed month-to-month work report for December.
The report is anticipated to show an increase of about 190,000 tasks in December following the dive of 228,000 tasks in November. The joblessness rate is expected to hold at 4.1 percent.
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