The US labor market picture continued to improve in the week ending January 14th – according to recent Labor Department reports.  Initial jobless claims for the week fell 50,000 to print 352,000 – the lowest mark in almost 4 years.  The figure falls below estimates of a decline to 390,000 from a previously revised higher 402,000 last week.  Widely positive, the survey’s results are helping to keep major markets positive for now with US equity markets just barely on the plus side.  Currency markets are additionally up on the news, with the Euro gaining by 0.23% at 1.2886.

With the decline in weekly jobless claims, the less volatile 4-week moving average drops to 379,000 from 382,500.  The fact that the figure remains below the market benchmark set at 400,000 is indicative that the US labor market could be improving – boosting support for an economic recovery in 2012.  However, in recent years, the survey has been notably volatile, lending to a wide variety of skepticism over today’s results.

Nonetheless, should claims continue to see additional weekly figures below the benchmark, the improvements could begin to trickle into the wider labor market – lowering the national unemployment rate.  Analysts continue to stand by expectations that companies could add as much as 1.9 million jobs this year, versus 1.6 million created in 2011.