The weakness of current economic markets and subsequent drops in stock markets have forced employers to quell employee dismissals and contract dissolvings. Because of this, jobless aid applications keep on falling according to a recent statistic released by the US Labor Department.
In regards to the numbers shown by said study, the average jobless aid applications number was marked at 278,000, around 16,000 less than the previous season. In the four-week period of January, the drop was boosted by an additional 2,300, reaching an estimated 275,000 when the study concluded.
Applications are not entirely a conclusive hint at job layoffs, functioning more like a proxy. Even so, this shows that numerous businesses maintain their confidence regarding a steady economic growth in the following months of 2016, basing their speculations on the traditional ebb and flow of the global economic market. Taking into account the sheer drop in the past few months, the whole market is expected to come rushing back to normal levels in the near future, boosted by new year purchases and newly founded businesses.
Even if applications spiked last week, reaching a six-month high, this was expected by marked analysts to occur due to the fact that the month of January is commonly accompanied by businesses laying off temporary retail employees. But this has quelled in the past week, as new workplaces and contracts have started to appear across the US, a common phenomenon for the first month of a new year.
The fact that unemployment benefits reached the lowest point in the past 40 years also impacted the number of jobless aid applications. This was caused by a steady improvement in job environments as well as the Fed’s decision to keep interest rates above 0. Loans from small businesses are expected to grow gradually nonetheless, with business owners carefully observing the state of the global markets.
But this does not entirely apply to businesses in the oil side of the market. Oil prices have slowly fallen each week, in some regions reaching an all time low due to the over saturation of oil surplus. This effectively made oil companies lay off more and more workers throughout the period, a move that will likely not stop in the near future, unfortunately.
Bearing in mind that jobless aid applications keep on falling, it seems that work environments in the US are steadily improving each year. According to market analysts, if jobless claims are marked below the 300,000 threshold, the job market, as well as the economy as a whole, will show gradual improvements along the way, from all sides of the spectrum.