"The underlying economy has momentum, and the employment data confirms that"
- John Brady, managing director at R.J. O'Brien & Associates
New applications for the unemployment benefits in the world's biggest economy jumped to a five-week high during the last week, reflecting the usual volatility, which is seen during the holiday season, because of temporary hiring and the closure of government offices. The Labor Department said that the number of people who applied for U.S. jobless benefits soared by 10,000 to a seasonally adjusted 372,000 in the week ended December 29, up from 362,000 a week earlier. The four-week moving average stood at 360,000, a 250 increase from the previous week's revised average of 359,750. At the same time, the private sector added 215,000 jobs last month, despite the fact that employers worried the economy might fall off the so-called "fiscal cliff" at year end.
"The underlying economy has momentum, and the employment data confirms that. The hope and prayer of the market is that our political leaders don't screw it up," said John Brady, managing director at R.J. O'Brien & Associates in Chicago.
"The underlying claims trend is still really low," said Scott Brown, chief economist at Raymond James & Associates in St. Petersburg, Florida. "There's a lot of volatility this time of year. Job destruction is really not a problem right now, it's really hiring that's the issue."
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