"Not only have you had a slowdown in layoffs, but also the total number of people on state benefit rolls has fallen. The labor market is getting better."
- Brian Jones, senior U.S. economist at Societe Generale
On Thursday, a weekly report from the U.S. Department of Labor confirmed that the latest weakness in the economy was only temporary and caused by harsh winter conditions. A stronger-than-expected jobless report, however, had little impact on the U.S. Dollar, as the currency was still undermined by the words of Federal Reserve's Chairman Janet Yellen.
The number of initial claims for jobless benefits increased only by 2,000 last week, hitting 304,000, surprising markets to the upside, as analysts claimed for a 16,000 increase. Despite a slight deterioration, the indicator still hovered around the lowest level since September 2007. Additionally, the total number of people receiving benefits sank to the lowest level since the beginning of the global financial crisis. The less volatile four-week moving average, which is considered as a better measure of underlying labour market conditions, declined 4,750 to 312,000, also hitting the strong psychological level– the lowest since October 2007. American companies are reducing dismissals, leaning from recession-era, job cutting and preparing for stronger sales as the latest indicators are pointing at the ongoing economic recovery. Even with the broadening improvement, Yellen claimed that there is no time for complacency and policymakers should focus on the target of reaching full employment.
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