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Applications for jobless benefits fall
By Christopher S. Rugaber |
December 31, 2010, Friday
|
Print Edition
Print Edition
THE number of Americans applying for unemployment benefits fell to its lowest point in nearly two-and-a-half years, a sign that the United States job market is slowly improving.
Applications dropped by 34,000 to 388,000, the fewest since July 2008, the US Labor Department said yesterday. The number of applications has either fallen or was unchanged in five of the past six weeks.
Fewer than 425,000 people seeking unemployment benefits signals modest job growth. But economists said applications need to fall consistently to 375,000 or below to bring down the unemployment rate. Applications for jobless benefits peaked during the recession at 651,000 in March 2009.
The latest report, covering the week with the Christmas holiday, is seen by some economists to be less reliable than most. One reason is that many state offices close for at least one day. Other seasonal factors make the report more volatile.
Still, a department analyst said there were no unusual factors affecting the report. The department takes into consideration the impact of the holiday.
Analysts said what matters most is the downward trend.
"If we can continue this improving trend, we'll likely see stronger job growth in 2011," said Benjamin Reitzes, an economist at BMO Capital Markets.
Applications are the closest thing to a real-time snapshot of the job market. They reflect the level of layoffs but can also indicate whether companies are willing to add workers.
The four-week average, a less-volatile measure, fell by 12,500 to 414,000 in the week ended last Saturday. That's the lowest level since late July 2008.
For most of this year, applications were around 450,000 before going below that number in November.
Applications dropped by 34,000 to 388,000, the fewest since July 2008, the US Labor Department said yesterday. The number of applications has either fallen or was unchanged in five of the past six weeks.
Fewer than 425,000 people seeking unemployment benefits signals modest job growth. But economists said applications need to fall consistently to 375,000 or below to bring down the unemployment rate. Applications for jobless benefits peaked during the recession at 651,000 in March 2009.
The latest report, covering the week with the Christmas holiday, is seen by some economists to be less reliable than most. One reason is that many state offices close for at least one day. Other seasonal factors make the report more volatile.
Still, a department analyst said there were no unusual factors affecting the report. The department takes into consideration the impact of the holiday.
Analysts said what matters most is the downward trend.
"If we can continue this improving trend, we'll likely see stronger job growth in 2011," said Benjamin Reitzes, an economist at BMO Capital Markets.
Applications are the closest thing to a real-time snapshot of the job market. They reflect the level of layoffs but can also indicate whether companies are willing to add workers.
The four-week average, a less-volatile measure, fell by 12,500 to 414,000 in the week ended last Saturday. That's the lowest level since late July 2008.
For most of this year, applications were around 450,000 before going below that number in November.
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