|
 The Labor Department said Thursday that the less volatile four-week
average fell for the third straight week to 338,500. Both figures
are near pre-recession levels.
Applications are a proxy for layoffs. They had spiked in early
October because of the partial government shutdown and processing
backlogs in California. But first-time applications have now fallen
in five of the past six weeks. The decline indicates that employers
are laying off fewer workers.
"If claims can remain at this week's level it would be easier to
believe in the idea that ... payroll growth could break out to the
upside," said Ian Shepherdson, chief economist at Pantheon
Macroeconomics.
Some economists warned that last week's Veterans' Day holiday may
have exaggerated last week's decline because many state government
offices were closed on Nov. 11.
But the broader trend has been downward. The steady declines suggest
hiring will remain healthy in the coming months. Employers added
204,000 jobs in October, shrugging off the 16-day shutdown.
Job growth accelerated over the summer. Employers added an average
of 202,000 jobs per month from August through October. That's up
sharply from an average of 146,000 in May through July.
The solid gains should help boost economic growth next year. Greater
hiring, combined with modest increases in pay, appears to be
supporting more spending. Higher retail spending last month has
raised hopes that the holiday shopping season will be better than
many analysts expected.
[to top of second column] |
Still, the economy is far from healthy. More than four years after
the recession officially ended, the unemployment rate remains high
at 7.3 percent.
And nearly 3.9 million people received benefits during the week
ended Nov. 2, the latest data available. That's down about 33,000
from the previous week. That total has fallen 26 percent in the past
year. Many of the former recipients have likely found jobs. But most
have likely used up all the benefits available to them
The Federal Reserve is closely monitoring the job market in deciding
when to reduce its economic stimulus. The Fed has been buying bonds
to keep long-term interest rates low and encourage more borrowing
and spending.
[Associated
Press; CHRISTOPHER S. RUGABER, AP Economics Writer]
Copyright 2013 The Associated
Press. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
 |
