Economy on Upswing as Jobless Claims Drop
While the number of jobless claims has come down, the fall has been very slow.
This has led analysts to believe that the economy, though on a upswing, is moving very slowly.
Reports from Labour Dept show that claim for unemployment benefit claim fell by 11,000. "Some companies are still struggling and believe they can meet any increase in demand with a smaller workforce.
The recovery in the labor market is probably going to be more modest than a lot of people are expecting," said Paul Dales, a U.S. economist at Capital Economics in Toronto.
The federal Reserve also echoed the same sentiments as that of corporate by saying that companies while have started to make profits are yet to get bullish on hiring. However, there is reason for concern for analysts as unemployment claims number have hardly seen a drop.
"We expect nonfarm payroll hiring of 175,000 for April, consisting of underlying hiring of 50,000 and a census contribution of 125,000," wrote economists at Goldman Sachs.
