U.S. Unemployment Rate Up, But Consistent with Healthy Labor Market

The Labor Department said that for the week ending November 28th, claims for state unemployment benefits increased 9,000 to a seasonally adjusted 269,000, as reported by Reuters. Claims held below 300,000, for a 39th straight week which is normally associated with a healthy labor market.

Data on Thursday showed planned job cuts in November were the lowest in 14 months, with the purge in the oil sector appearing to be slowing. Factory orders picked up in October after two straight months of declines.

Bloomberg reports that according to figures released Wednesday from the ADP Research Institute in Roseland, New Jersey, there was a 217,000 increase in employment which was the biggest in five months.

According to Bloomberg, employers are keeping those already on their payrolls as the labor market tightens because it is difficult for them to find workers who are skilled and experienced.

Federal Reserve policy makers have been monitoring progress as they consider whether the economy has the strength to handle an increase in interest rates, a decision that will be reached in Federal Reserve meetings December 15th and 16th.

Janet L. Yellen, the Federal Reserve chairwoman has recently stated in multiple media reports that she believes the economy is healthy enough to support the benchmark interest rate increase.

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