The U.S. labor market hits record, dollar plus

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The labor market in the United States retains a strong position, and weekly data on the number of requirements to receive unemployment benefits for many weeks, proves that the problem the Americans have is almost there. Statistics published yesterday showed that initial claims for benefits fell last week to 24 thousand is quite large and amounted to 209 thousand Is much better than forecasts, which assumed the figure of 230 thousand For the foreign exchange market is the most indicative is the number of initial, not repeat requests.
That means get a job becomes easier, the user gets access to constant earnings and is ready to engage in full economic relations. This is a positive thing not only for GDP growth in its global performance, but also for its components in the form of retail sales, household spending and other.
Overall, in the last 12 months, the index of primary demands for receiving unemployment benefits was in the range of 220-240 thousand. It is a normal value that is already calculated into the unemployment rate.
The current sharp decline of the indicator, which was at a minimum for the 46 years the value may be associated with the specifics of the employment market during the Easter and school holidays. In such cases, there is a local flow of labor from one area to another, it is temporary. This means that after a few weeks the market will align itself and return to healthy values, without abnormal records.
Meanwhile, the employment sector in the United States continues to improve: employers are willing to hire staff, and gradually increase the wage, as shown by the monthly reports. While the labor market is strong and leaves room for optimization, the US GDP will grow at the same rate 3% 3.5% annually. For the US dollar is a good signal that confirms the consistency of his current three-month highs in tandem with the Euro.
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Anna Bodrova,
Senior analyst,
Alpari