Editor
The labor market is recovering from COVID wages, and job claims are at their lowest level since December.
It’s been more than a week since the start of the inhuman act of Russia, the Russian military invasion. As a result of this military action, the global stock markets had a fortune this week. Both the New York stock market and the London stock market experienced declines and losses. Especially on the U.S stock market exchange, yet after yesterday’s Powel announcement, investors are getting calm.
The Federal Reserve has confirmed that in the next following week, the central banks will increase their interest rates by a quarter. On Thursday, the labor department delivered more positive news for investors and the labor market. February job claims have declined to their lowest level since the start of February. The application rate for state unemployment insurance in the United States has surpassed all expert forecasts and estimates, setting a new low this year.
According to the report, U.S job claims fell by 18.000 in February, which leaves it at 215.000 now, and it’s been expected that it will fall even more. The COVID spread is wiling due to the high vaccination efforts. Workers now dare to return to their work. In fact, there are separate and stronger reports about the labor market state. Some reports hint that U.S. companies were able to provide over 415,000 new jobs in February.
This falling trend in job claims and the rising trend in job offers is more likely to continue in the next month. The COVID is at its end, and workers are more optimistic compared to the same period last year. In March 2021, there were more than 700.000 job claims. If that means one thing, it will be that the labor market is accelerating its recovery, and soon it will get back to its normal levels.
Traders are now waiting for this march’s interest hikes. According to Wall Street experts, traders forecast a probability of 95% of a 25% hike in March, in return for a 5% probability of 50% hikes. Yesterday, the S&P 500 and its sectors gained 2.6%. Other major industries have benefited quite well from Powel’s announcements.
Yet, the Federal Reserve will walk this very carefully, and that’s because of the Russian and Ukrainian wars. Both armies are fighting for control of Ukraine’s capital, Kyiv. The fight is on the air. Russia is trying to invade the skies, which will be an advantage to it and a disadvantage to the current Ukrainian government. Investors are afraid of the negative impact on the Russian economy and the European stock market exchange. The probabilities are that both sides will start a serious negotiation this week or next week. If not, Vladimir Putin will use all his troops to overthrow the current government and prevent it from joining the NATTO.
In terms of economic recovery, this war will benefit no one in the U.S. market or the global labor market. Covid has already done a number on the economy.
labor market is recovering labor market is recovering labor market is recovering
