WASHINGTON (AP) â¿¿ The number of people seeking unemployment benefits fell slightly last week to the lowest point in four years, a further sign that the U.S. job market is improving.
A seasonally adjusted 351,000 people sought unemployment aid, down from 353,000 the previous week, the Labor Department said Thursday. That matches the four-year low reached three weeks ago.
The improving numbers show that steadily fewer people are being laid off and suggest that some companies are stepping up hiring.The four-week average of applications, which smooths out weekly fluctuations in the data, also fell last week, to 354,000. That's also the lowest in four years. Applications for unemployment aid have fallen steadily since the early fall and are now down nearly 15 percent since October. When applications drop consistently below 375,000, it usually signals that hiring is strong enough to lower the unemployment rate. John Ryding, an economist at RDQ Economics, said the drop in unemployment applications can be attributed to a "marked improvement in the pace of job creation." Economists expect another strong month of hiring for February, similar to the average net gain of about 200,000 jobs in each of the previous three months. The economy added 243,000 net jobs in January, the most in nine months. The unemployment rate dropped for the fifth straight month, to 8.3 percent, the lowest in nearly three years. Healthier economic growth is spurring greater job growth. The economy expanded at an annual rate of 3 percent in the final three months of last year. Most economists expect growth to slow in the current quarter, because companies won't need to rebuild their stockpiles of goods as much as they did last winter. That would mean less production of goods. But there are signs that the economy is still expanding at a healthy pace.