Recent jobless claims figures suggest that the labor market is healthier than ever. This suggests that employers are more than happy to expand the number of people they employ, which is a good news for all job seekers out there.
The U.S. Department of Labor said the week ended Jan. 7 only added 10,000 jobless claims to the previously adjusted 247,000. This means that jobless claims continue to be lower than the 300,000 thresholds for a strong labor market, Reuters reported.
Overall, weaker jobless claims suggest that a fewer number of people are applying for state unemployment benefits. To qualify for unemployment benefits, a person should have proof that he is no longer working for an entity.
Jobless claims that are lower than expected also suggest that companies, government agencies and other sources of employments are registering lower turnover rate. This suggests that employees more likely have job security.
Washington Examiner projects that if the number of jobless claims drops any further, President-elect Donald Trump will have a healthy labor market to take care of. The publication reported that the recent jobless claims figure has not been observed between 1973 and 2016.
The healthy labor market could indicate that wage growth will further accelerate, a sign that inflation could come sooner than expected. If it does, the Federal Reserve will have to increase interest rates sooner than later.
With the strong labor market and projected higher wage growth as a backdrop, Trump's first year as a president of the U.S. could paint a rosy picture for the country's economy. The president-elect is proving to be a friend to the business world with his pledges to reduce their taxes and impose regulations that are not as strict as the ones made by President Barack Obama's administration.
Jobs & Hire previously reported that Trump also promised to create more jobs for the American people.
