Arrow-right Camera
The Spokesman-Review Newspaper
Spokane, Washington  Est. May 19, 1883

In brief: Unemployment claims point to solid economic growth

From Wire Reports

WASHINGTON – More Americans sought unemployment benefits last week, but the number of applications continues to be at historically low levels that suggest solid economic growth will continue.

The Labor Department said Wednesday that applications for unemployment benefits climbed 17,000 last week to a seasonally adjusted 298,000.

The four-week average, a less volatile measure, rose 250 to 290,750. That average has plummeted 17.5 percent in the past 12 months.

“The claims data still point to relatively upbeat conditions in the labor market,” said Daniel Silver, an economist at JPMorgan Chase, noting that there are routine ups and downs in the weekly figures.

Applications are a proxy for layoffs. For almost four months, applications for jobless aid have hovered at relatively low sub-300,000 levels. That suggests that employers expect strong economic growth to continue, causing them to hold on to their staff and potentially hire additional workers.

Hiring has improved as layoffs have waned.

Employers added 321,000 jobs in November, bringing the total for the first 11 months of 2014 to 2.65 million new jobs. That already makes 2014 the best year for hiring since 1999.

The unemployment rate held steady at 5.8 percent, down from 6.7 percent at the start of the year.

The four-week moving average of jobless claims is consistent with monthly job gains of at least 250,000, said Joshua Shapiro, chief U.S. economist at the forecasting firm MFR.

Still, wage growth has lagged hiring. Average wages increased only 2.1 percent in the past 12 months. That means that incomes are only barely outpacing inflation, with core consumer prices – which excludes volatile energy and food costs – up 1.7 percent over the past 12 months.

Volkswagen recalls cars because of fire risk

NEW YORK – The Volkswagen Group of America is recalling about 38,000 cars because a fuel leak in the engine may cause a fire.

The automaker said no injuries or accidents have been reported.

The recall covers 2014 to 2015 model years of the Volkswagen Beetle, Jetta, Passat and 2015 models of the Golf and GTI.

The National Highway Traffic Safety Administration said drivers might smell gas inside their vehicles. Volkswagen is telling owners who smell gas or see the electronic power control warning light go on to immediately bring the vehicle to a Volkswagen dealer to have the fuel system inspected.

Volkswagen said it would notify owners of the recalled cars. There is no cost to owners for the repairs.