Jobless claims surge but labor market growth remains steady

First-time jobless claims spiked last week, but all signs still point to a solid labor market recovery.

Applications jumped 25,000 to a seasonally adjusted 304,000, where they have been hovering near since the fall, the Labor Department said Thursday.

{mosads}The latest increase comes amid a roller coaster of application fluctuations, with the latest rise coming two weeks after applications fell sharply by 42,000, mostly due to seasonal factors and the federal Martin Luther King Jr. holiday.

Meanwhile, the less volatile four-week average, which is a better indication of the direction of the labor market, fell 3,250 to 289,750. 

Employers added 257,000 jobs in January, and stronger gains in December pushed job growth above 3 million last year. 

Economists are still concerned about the lack of substantial wage growth but are optimistic that a tightening labor market this year will help boost paychecks.

Earlier this week, Treasury Secretary Jack Lew said critics of the Obama administration’s efforts to boost economic growth have been “proven wrong.”

The economy has “really turned the corner” and is finally seeing consistent growth, he said on CNBC.

“The facts have proven them wrong,” he said.