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Unemployment Data Fluctuations: What Does Citi Say About the US Employment Outlook
【Crypto World】Year-end economic data is here. Citigroup economists recently poured cold water on the situation—don’t be fooled by the superficial decline in unemployment claims before and after the holidays.
The numbers look good; during the week of Christmas, the number of people applying for unemployment benefits dropped from 215,000 to 199,000, but the forecast was 220,000. Sounds a bit strange? Citigroup pointed out the issue: “The seasonal adjustment for holiday weeks this year has gone wrong, much more than in previous years. A more reliable signal of initial jobless claims will have to wait until January.”
But don’t be too pessimistic. Layoff numbers remain low, and Citigroup expects non-farm payrolls to increase by 75,000 in December, with this data to be released next week. The key point is that they also expect the unemployment rate to rise to 4.7%—there’s an interesting logic behind this: the labor force participation rate is rising again.
In other words, the market continues to send signals, and we have to wait for the data to speak.