Unemployment rate in the United States seems to be at its lowest, after a report on Thursday revealed the lowest unemployment benefit claims.
"Claims are a welcome shot in the arm for those believing the economy is strong. The U.S. remains an oasis of prosperity in the world and will continue to do so," MUFG Union Bank Chief Financial Economist Chris Rupkey said.
According to the Labor Department, unemployment insurance benefits went down to 265,000, which is 43,000 less than the previous record. It is the lowest it has gone to since April 2000.
RBS Securities Inc. Economist Guy Berger says, "The labor market's in good shape going into 2015 and looks like it will be in good shape for the rest of the year. There is nothing wrong and almost everything right with the economy right now."
In his SOTU 2015, President Barack Obama told the public that the unemployment rate is now at its lowest. He also added that the country is now breaking free from recession.
"America, for all that we have endured, for all the grip and hard work required to come back, for all the tasks that lie ahead, know this-the shadow of crisis has passed. And the State of the Union is strong," Obama told the congregation.
With the cost of fuel going down and unemployment benefit claims at its lowest, it looks like the US economy is back in full swing. Apart from those, US payrolls have also seen a steady rise in the past month. Last year, the United States has generated the highest number of new jobs since 1999, which was 2.95 million.
While 2015 looks promising, the economy still needs a major push. President Obama had addressed the issue on equal pay for equal pay for women, as well as an increase in minimum wage. He called on companies to give their employees a minimum wage of $10.10 per hour.
Housing should also regain some composure this year.
We retain an optimistic outlook on housing, even as we caution that momentum is likely to remain choppy over the near-term," Economist Gennadiy Goldberg said.
