August 17, 2012 in Business

Jobless benefits applicants up slightly

Rise has slowed, a sign that hiring increasing
Martin Crutsinger Associated Press
 

WASHINGTON – The number of Americans applying for unemployment benefits edged up slightly last week but remained at a level consistent with modest gains in hiring.

Unemployment benefit applications rose by 2,000 to a seasonally adjusted 366,000, the Labor Department said. The less volatile four-week average fell by 5,500 to 363,750. That was the lowest level since late March.

Applications have trended lower in the past two months, indicating companies are laying off fewer workers and hiring is picking up. When applications fall consistently below 375,000, it generally suggests hiring is strong enough to lower the unemployment rate.

“Claims so far in August have declined moderately compared to July, suggesting some improvement in the U.S. job environment. And that’s good news,” said Jennifer Lee, senior economist at BMO Capital Markets.

The total number of people receiving some kind of unemployment assistance also fell, dipping to 5.68 million for the week ending July 28, 70,000 below the previous week.

The decline in the number of people applying for weekly unemployment benefits has been one of several signs that the economy and hiring rebounded in July after falling into a spring slump.

Employers added 163,000 jobs in July, the most since February. Job gains averaged only 73,000 jobs a month from April through June, not enough to keep up with a rising population. The unemployment rate blipped up to 8.3 percent, from 8.2 percent.

Americans boosted their retail spending in July by the most in five months, according to the Commerce Department. That suggests some are more confident in the economy.

And factory output also rose in July for the second straight month, according to the Federal Reserve. A large jump in auto production drove the increase.

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