Due To Government Shutdown And Other Issues US Labor Market Remains Strong

Posted on: Feb-2019 | By: Reports Buzz | Business Services & Administration

Reportedly, in the last week, the number of Americans applying for unemployment profits reduced to over a 49-Year low, but the decline likely states the health of the labor market as alleges for many states counting California. Still, conditions for this remain strong, which for present should aid to temper fears of a pointed slowdown in economic development. The U.S. economy is going through several tailwinds, including a harsh US trade spat with China and month-extended partial government shutdown of the federal administration, which is impacting business and consumer confidence. Mounting interest rates, declining fiscal stimulus, and chilling global economies are also crimping domestic development.

Jim Baird—Chief Investment Officer of Plante Moran Financial Advisors, Michigan—stated, “If you are looking for positive news on the economy, look no beyond than the labor market. Growth might be dipping, but the overall scenario for workers and job-seekers stays quite positive.” Previous claims for state unemployment benefits decreased 13,000 to a seasonally regulated 199,000, which is the lowest level from November 1969 when 197,000 applications were registered, the U.S. DOL (Department of Labor) said.

Economists’ survey by Reuters had predicted claims increasing to 220,000 in the recent week. The DOL said claims for California, North Dakota, Kansas, West Virginia, Virginia, and Hawaii were estimated. The 4-Week moving average of initial claims, considered a good measure for this market trends as it sorts out weekly volatility, which fell 5,500 to 215,000 in the last week. Almost one-quarter of federal bureaus have been closed since December 22, 2018, affecting 800,000 government employees, with most of them working without pay. But economists predict the longest close down in history would push the unemployment rate over 4% in January as the furloughed employees would be considered as unemployed. Overall, all these factors are impacting on the economy of the U.S. on a regional and national level.