Despite the growing number of Americans filing for unemployment, reports show that the economy is actually growing, according to Reuters.
The United States Department of Labor reported the amount of individuals who applied for unemployment benefits rose to a “seasonally adjusted” 357,000. That's up 16,000 from the previous season. In addition, the moving average for initial claims per four weeks rose from 340,750 up to 343,000.
"The underlying growth trend is showing some encouraging signs, but the key risk is how much fiscal tightening we'll see this year," said Economist Laura Rosner who works for BNP Parabis in New York.
Despite the growing trend, experts believe a four-week moving average under 350,000 indicates a stable hiring pace for the month of March.
Analysts said there has been a drop in layoffs over the first few months of the year. However, a decline in the pace of layoffs doesn't translate to a better pace of hiring.
According to Gennadly Goldberg, an analyst at TD Securities in New York, the rise in claims correlated with the addition of 195,000 workers being added to employer’s payrolls in March.
United States Gross Domestic Product rose by an annual rate of 0.4 percent in the fourth quarter of 2012. Growth in exports and more investments from businesses prompted the government to increase its prior growth estimate.
A Poll done by Reuters estimated the GDP growth rate to rise 0.5 percent. So far this year, it has been just below that mark, which doesn't bode well for the prospect of job growth.
The shortfalls of the U.S. economy have come from a recent drop in the accumulation of inventory as well as a steep decline in military spending. However, many experts expect this to change when the reports for the first quarter come out.
The government is expected to publicize job growth estimates on April 5.
