In brief: Applications for jobless aid at seven-week low
WASHINGTON – The number of Americans applying for unemployment benefits has reached its lowest level in seven weeks, a sign that the U.S. economy and job market are steadily improving.
The Labor Department said Wednesday that applications for unemployment benefits dropped 9,000 last week to a seasonally adjusted 280,000.
The four-week average, a less volatile measure, declined 8,500 to 290,250. That average has plunged 16 percent in the past 12 months.
“What we have seen in the data over the past few months looks favorable for the labor market,” said Daniel Silver, an economist at JPMorgan Chase.
Applications are a proxy for layoffs. The number of people seeking jobless benefits has been at historically low levels – below 300,000 – for 14 of the past 15 weeks. That indicates that companies are retaining their workers and potentially looking to hire with the expectation that economic growth will continue.
As applications for benefits have steadily dwindled, hiring has improved. Employers added 321,000 jobs in November, the most in nearly three years. The unemployment rate held steady at 5.8 percent, down sharply from 7 percent 12 months earlier.
In the first 11 months of this year, employers have added 2.65 million jobs. That already makes 2014 the best year for hiring since 1999.
But wage growth remains sluggish. Average pay has risen just 2.1 percent over the past 12 months, only slightly better than inflation.
Air bag maker Takata revamps management
TOKYO – Takata Corp., the Japanese maker of air bags at the center of massive recalls in the U.S. and elsewhere, says its president Stefan Stocker is moving aside to give way to the chairman to take over.
Takata said in a statement that chairman Shigehisa Takada will take on the additional role of president of the company. Company spokeswoman Akiko Watanabe said Stocker will remain a board member in a move that is not intended to be a demotion.
Takada, Stocker and two other top executives of the company will take pay cuts ranging from 20 percent to 50 percent.
The defective air bags can explode with too much force, spewing shrapnel at drivers and passengers. At least 10 automakers have models with Takata driver and passenger air bags.
Chief of e-commerce at Sears has resigned
CHICAGO – Sears Holdings e-commerce chief Imran Jooma has resigned, creating a vacancy in a key position as the struggling retailer banks on technology to turn around its flagging fortunes.
Jooma, who joined the Hoffman Estates-based Sears Holdings in 2007, resigned Dec. 17 and will leave the company Feb. 6, the firm said in a regulatory filing Tuesday.
Jooma served as executive vice president and president of online, marketing, pricing and financial services.
A Sears internal communication obtained by the Chicago Tribune said Jooma will “pursue a new opportunity in 2015” and “Imran will assist in transitioning different parts of his organization to new leadership.”
The company, which owns the Sears and Kmart retail stores, has seen years of revenue declines and is closing hundreds of stores to invest in its loyalty program and integrated retail. It also has lost money for 10 straight quarters. It lost $1.5 billion in the 39 weeks ended Nov. 1.