SEASONAL QUIRKS In a second report, the Labor Department said initial claims for state unemployment benefits rose by 19,000 to a seasonally adjusted 316,000 for the week ended Jan. 10. Economists, who had forecast claims falling to 291,000 last week, said the data had been distorted by difficulties adjusting it for seasonal fluctuations. Seasonal quirks also have been blamed for the weak retail sales and wage growth in December. Seasonal adjustments become particularly difficult around year-end. We expect claims to resume their downward trend in the coming weeks and reflect broader improvement in labor markets, said Jesse Hurwitz, an economist at Barclays in New York. The four-week moving average of claims, considered a better measure of labor market trends as it irons out week-to-week volatility, remained below 300,000, a level associated with a strengthening labor market, for an 18th straight week. Other reports showed mixed fortunes for manufacturing in New York state and the mid-Atlantic region in January.
Posted on: Fri, 16 Jan 2015 12:08:46 +0000