IBJNews

Weekly unemployment-aid applications fall

Back to TopCommentsE-mailPrintBookmark and Share

The number of Americans seeking unemployment aid fell to a seasonally adjusted 340,000 last week, driving down the four-week average to its lowest level in five years. The drop is a positive sign ahead of Friday’s report on February job growth.

Applications for benefits fell by 7,000 in the week ended March 2, the Labor Department said Thursday. And the four-week average, a less volatile measure, dropped to 348,750. That’s the lowest since March 2008, just a few months into the Great Recession.

Weekly applications are a proxy for layoffs. When they fall, it suggests that companies are shedding fewer jobs. More hiring may follow.

The decline adds to other evidence that hiring may have been better last month than economists forecast. Analysts predict that employers added 152,000 jobs in February, according to a survey by FactSet. That’s about the same as in January. The unemployment rate is projected to fall to 7.8 percent from 7.9 percent.

“The improvement is still gradual, but at least things are moving in the right direction,” Paul Ashworth, an economist at Capital Economics, said in a note to clients.

The economy generated an average of 200,000 jobs a month from November through January. That was up from about 150,000 in the previous three months. In January, it added 157,000.

Several reports this week suggest hiring was healthy last month. Payroll services provider ADP said Wednesday that businesses added 198,000 jobs in February, above most analysts’ expectations. And January’s hiring was revised higher by 23,000, to 215,000.

Services firms, including retailers, restaurants and construction companies added jobs at a healthy clip, according to the Institute for Supply Management’s monthly survey. An index of hiring by service companies slipped but remained near January’s seven-year high.

The ISM’s manufacturing survey found that factories also added workers in February, too, though at a slower pace than the previous month.

The number of people receiving unemployment aid fell to 5.4 million in the week ended Feb. 16, the latest data available. That’s a drop of 362,000 from the previous week. Some of the decline is likely because people found work. But it is also because many have simply used up all the benefits available.

Strong auto sales and a healthy recovery in housing are spurring more hiring and economic growth. Builders started work on the most homes last year since 2008. New-home sales jumped 16 percent in January to the highest level since July 2008. And home prices, meanwhile, rose by the most in more than six years in the 12 months ending in January, according to real estate data provider CoreLogic.

Companies are laying off fewer workers despite concerns about the impact of higher taxes and government spending cuts. Social Security taxes rose 2 percentage points Jan. 1, reducing the typical household’s income by $1,000.

And $85 billion in across-the-board government spending cuts kicked in March 1 after the White House and Congress failed to reach a deal to avoid the reductions.

The cuts could slow economic growth and cost 700,000 jobs, according to the Congressional Budget Office. They could also reduce unemployment benefit checks for those out of work for more than six months by about 11 percent, according to the National Employment Law Project. Benefits average about $320 per week nationwide.

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. Hello Dear Are you tired of Seeking Loans and Mortgages,have you Been Turned down constantly By your banks and Other Financial Institutions or Micro Finance scheme. This is let you know with 100% guarantee that we Offer loans ranging from $1,000 Minimum to $1,000,000.00 Maximum at 3% interest rate per Month. We give out LOANS for developing business. a competitive edge/business expansion. email address: michealscottloan124@gmail.com We offer the following kinds of loans and many more; * Personal Loans ( Unsecured Loan) * Business Loans ( Unsecured Loan) * Consolidation Loan * Combination Loan * Home Improvement * Xmas Loans for contact to seek for loan email this email address: michealscottloan124@gmail.com Thanks

  2. My name is Mr Henry Josh and i live in the USA California and life is worth living right now for me and my family and all this is because of one man sent by GOD to help me and my family, i once had a life filled with sorrow because my first SON needed a kidney transplant and all our savings were going towards his medications and this normally leaves us with no money to pay our bills or even put enough food on our table and our rent was due and no funds to pay these bills and life felt so unfair to me and every night my wife will cry herself to sleep every night until one day, i was browsing through yahoo answers and i saw a striking advert of a man that gives out personal loans and that the offer is opened to all and i have heard so many things about internet scams but at this point of my life, i was very desperate and ready to take any risk and at the end of the day, i applied for this loan and from one step to another, i got my loan within 12 hours through bank transfer and you know, it was all like a dream and i called Mr Daniel Jones A Man who is the GOD sent lender i found and said, i have received my loan and he smiled stating that to GOD be the glory and i was so shocked as i have never ever seen anyone with such a GOD fearing and kind heart and today, i am the happiest man on earth because by GOD’S grace, my SON kidney transplant was successful and today he is healthy, i and my family are living very comfortable and happy and if you are in my former situation or in serious and legitimate need of a loan, you can reach this GOD sent lender via fidelityloanfirm@outlook.com

  3. Greetings to everyone reading this comment!!! I am Greg William by name. I am out here to recommend the effort of Mark Oscar,I was in need of a consolidation loan amount of 50,000 and as soon as I got in contact with Mark Oscar Loan Firm on Wednesday last week and on Friday last week as well I receive an alert from my bank(Royal Bank of Scotland Group) that the fund was transferred,I want everybody on this site to contact Mark Oscar now via email on how to get a loan because I got my loan from them and I am very happy,so contact them now. Oscarloanfinance@hotmail.com Thanks!!!!!!

  4. Elected officials, like Mourdock, get vested in 8 years. It takes 10 years for all other public employees, most of whom make a lot less money. So much for the promise to finish out his term.

  5. Great state treasurer and a good man!! Just curious if the folks who didn't quite understand his quote would like to tell my daughter-in-law that God didn't intend her! Mourdock's comment was correct but twisted and the article didn't mention that his opponent and the press let the impression stand that Mourdock meant that the rape was intended. Stupid people!!

ADVERTISEMENT