Applications for US unemployment aid fall to 319K

Published on NewsOK Modified: May 8, 2014 at 10:02 am •  Published: May 8, 2014
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WASHINGTON (AP) — The number of Americans seeking unemployment benefits fell 26,000 last week to 319,000, the latest sign that the job market is slowly improving.

The drop follows two weeks of increases that reflected mostly temporary layoffs around the Easter holiday. The holiday can cause an uptick in layoffs of bus drivers, cafeteria workers and other school workers during spring break. Those earlier increases caused the four-week average of applications, a less volatile number, to rise 4,500 to a seasonally adjusted 324,750.

With the impact of the holiday fading, applications are returning to pre-recession levels. The average fell in early April to 312,000, the fewest since October 2007. The recession officially began in December 2007.

"Through the volatility, the data remain encouraging," said Jim O'Sullivan, chief U.S. economist at High Frequency Economics.

The four-week average of applications is down from an average of 343,000 for all of last year, O'Sullivan noted. That is "consistent with the pick-up in employment growth" that's taken place this year, he added. Monthly job gains have averaged 214,000 from January through April, up from 194,000 in 2013.

Applications are a proxy for layoffs, and so the decline suggests that companies are cutting fewer jobs. That trend is typically followed by more hiring, though the relationship is not always exact.

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