It is another great news for Obama. New claims fall for Unemployment benefits extension in the year 2013 have fallen to five years low in US
(NVONews.Com) Even as factory activity advanced at its fastest pace in nearly two years this month the number of Americans filing new claims for unemployment benefits fell to its lowest in the last five years.
According to the US Labour Department figure given on Thursday claims for state unemployment benefits fell by 5,000 to 330,000, the lowest since January 2008.
Experts are of the view that this obviously suggests that the economy is doing better.
Claims are now at roughly the same level they were in much of 2006 and 2007. They started going up in December 2007, the month that the recession began.
Claims have now fallen for two straight weeks, suggesting employers do not yet see tax hikes enacted this month as a big threat to consumer demand.
However, while employers have pulled back on layoffs, they have only added jobs to the economy at a lacklustre pace.
Analysts polled by Reuters expect an employment report due on February 1 will show 165,000 jobs were added to payrolls this month, up from 155,000 in December last. The unemployment rate is expected to hold steady at 7.8 percent.
The claims report showed the number of people still receiving benefits under regular state programme after an initial week of aid dropped 71,000 to 3.16 million in the week ended January 12.
Job gains averaged 153,000 jobs per month in 2012, little changed from 2011. The sluggish labor market and subdued inflation pressures appear likely to keep the Federal Reserve on its ultra easy monetary policy course.
Markit’s factory report also offered support for the idea that labour market recovery was gaining traction with new jobs in the sector being created at the fastest pace in nine months.
A Markit subindex showed factory output grew at its fastest pace since March 2012, while new orders also rose. The new orders gauge hit 57.7, its highest level since May 2010.
As the economic conditions in China and some parts of Europe improved it helped boost orders from abroad. But most firms largely attribute this growth to higher demand from customers of the United States itself.
However, economists have cautioned about reading too much into this month’s figures on jobless claims, which tend to be volatile around this time of the year because of large swings in the model the government uses to iron out seasonal fluctuations.
The data helped the dollar extend gains versus the yen, while US Treasury debt prices cut down gains.