- Jim O'Sullivan, chief U.S. economist with High Frequency Economics Ltd
The number of Americans applying for unemployment benefits dropped last week from a more than five-month high, indicating the labour market remains solid even as economic growth is likely to have slowed sharply in the final quarter of 2015. Initial claims for jobless benefits fell 10,000 to a seasonally adjusted 277,000 for the week ended January 22, according to the Labor Department. The drop partially offset a surge in claims of 20,000 in the preceding week to their highest level since July. Many economists argued that spike was caused by seasonal volatility around holiday employment. The four-week moving average of claims declined to 275,750 last week, down from 277,000 a week prior. It was the 44st consecutive week that claims remained below the 300,000 mark, which is associated with a healthy labour market. Some economists are concerned that low claims figures may suggest a lack of dynamism in the labour market.
The Labor Department is due to release its monthly employment report later in the day. Economists predict employers likely added 200,000 workers last month. The ADP report showed private-sector created 257,000 jobs in December, the strongest gain since December 2014.
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