Claims for unemployment benefits rise to 354,000



On Thursday, according to the numbers revealed by Labor department, the claims for unemployment benefits rose by 10,000 to 354,000. Last week’s trend may be a little deceptive as the figures are not exact since figures for 5 states that include Minnesota, Oregon and Virginia were filed in a hurry because of the Memorial Day holiday.

Labor department analysts suggest that this could have derailed the actual readings. Therefore, last week’s reverse trend may not be a true reflector of the job market and economy as a whole.

Despite last week’s increase in the number of claims for unemployment benefits, claims are still in the mid-range compared to the figures revealed this year.

With a drop in the continuing claims, the rate of unemployment could drop down to four and a half year low of 7.5 percent. Growth in the economy aided by the housing sector is considered to be the prime catalyst behind the decline in the rate of unemployment.


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