US Jobless figures remain below 300,000 for 16th Straight Week signalling a recuperating Economy

US Jobless figures remain below 300,000 for 16th Straight Week signalling a recuperating Economy

The US labour market is surely pointing to an optimistic future as the unemployment benefit claims continue to remain at historically low levels despite of rising slightly last week, signalling low level of layoffs and robust hiring.

The Labour Department has reported that the claim applications rose 3,000 to a seasonally adjusted 271,000 in the week ending June 20. A total of 2.25 million people received benefits last week, marking a rise from the 22,000 who were benefitted in the previous week. It was also noted that the four-week average declined to 273,750.

However, in comparison to the last year, the total number of beneficiaries has fallen by 13% . Moreover, the claims for US unemployment benefits remained below 300,000 for the 16th straight week.

Russell Price, senior economist at Ameriprise Financial Inc. in Detroit, commented, “Companies are holding onto their employees very tightly, and it shows a strong need for labour. That implies very positive trends for job growth in the months and quarters ahead”.

The reduced claims signals steady hiring and a tighter labour market which would in turn encourage Americans to spend more, thus accelerating growth in the second half of 2015. Further, the decreasing jobless aid means downward trend of layoffs, which hints to the optimistic businesses scenario that leads to retaining the workers.

The Commerce Department report on Thursday further noted that consumer spending has increased phenomenally, recording the biggest rise since August 2009, of 0.9% in May.

The robust scenario would strengthen Federal Reserve’s plans of increasing the benchmark interest rate later this year.

Popular Stories

Overall childhood ‘asthma epidemic’ levels off in U.S.

The overall ‘asthma epidemic’ among children has... Read More

‘UC Quits’ Working to Help California Smokers Get Rid Of Smoking

As New Year is approaching, people have already... Read More

Scientists begin Stem Cell research to find cure for Alzheimer’s

Alzheimer’s disease, the commonest cause of... Read More

New House Bill to Restrict First-Time Opioid Prescriptions

Cases of opioid abuse have been increasing and... Read More

Comcast installs DOCSIS 3.1 modem on customer-facing network in Philadelphia

In an announcement made on December 22, cable giant... Read More