WASHINGTON (Sputnik) — Increase in US jobless claims is a result of volatility in the US economy and not a cause for alarm yet, however, if the numbers persist in the coming weeks, there would be reason for concern, economists told Sputnik.
“One thing to keep in mind about these numbers is they can jump around, because the economy is volatile,” Loyola University economics professor John Burger told Sputnik on Thursday. “Economists don’t make a lot of one particular week’s movement, and during the last couple of months, the number of claims has steadied around 300,000. These numbers are not alarming.”
BREAKING: US weekly jobless claims total 304,000 vs 285,000 estimate http://t.co/xJXI22nVAe
— CNBC Now (@CNBCnow) 12 февраля 2015
However, if the numbers persist in the coming weeks, he added, there would be reason for concern, saying that it is better to look at the long-term unemployment figures rather than short-term indicators like jobless claims.
The US Department of Labor reported that US jobless claims increased by 25,000 in the first week of February, to 304,000 while its January US Jobs Report showed a stable unemployment rate in the country between 5.6 and 5.7 percent.
“The more competitive our economy is, the more jobs we are creating,” Burger said. “We are creating a healthy number of jobs each month, and more discouraged workers are coming back into the labor force.”
US Economy Adds 257000 Jobs In Biggest Increase Since November 2008 —Gallup CEO calls the "low" jobless rate a "lie" http://t.co/Vy6fONZDTL
— Larry Elder (@larryelder) 8 февраля 2015
The likely reason the previous weeks' numbers might have been a little low is due to the holiday season, labor economist for the US state of Washington, Paul Turek, told Sputnik.
“This evens it out a little bit. Like most labor data, it is better to look at them during the long term. Like unemployment, the numbers bounce around every now and then," Turek stated.
Looking at the numbers for December and January, it's difficult to see any real bloom in the economy going on, Center for Economic Policy and Research Co-Director Dean Baker said in an interview to Sputnik on Thursday.
“People say that this dynamic [in employment] growth is going on right now, but I just don't see it. You need consumption to drive growth, and that's not occurring. We have only seen modest growth," Baker stated.
The Department of Labor seasonally adjusts and annually revises the unemployment data, given the regular fluctuations due to seasonal changes, major holidays, the school year, or other events in the United States.
