Employment & Job News 2014: Jobless Claims Fall Again, Near Pre-Recession Levels
First-time jobless claims for the week ending June 14 fell 6,000 from the previous week. A total of 312,000 Americans filed unemployment claims for the first time last week, the Labor Department reported on Thursday.
These numbers are nearing pre-recession levels and the four-week average, a more accurate indicator of unemployment, also fell to 311,750.
Economists had predicted 314,000 new claims to be filed. Since winter, claims have been generally in the low 300,000s.
Bloomberg's survey of 50 economists predicted a median number of 313,000.
Unemployment claims are usually filed due to workers being laid off. These recent reductions in jobless claims point to less layoffs and a more friendly hiring environment.
"The trend in initial claims is good," Ryan Sweet, senior economist at Moody's Analytics Inc. in West Chester, Pennsylvania, said before the report. "The job market continues to heal."
Earlier this month, the Labor Department reported 217,000 jobs were added by employers in May. The unemployment rate of 6.3 percent was not increased and remained steady at that number.
Continuing claims dropped as well, down 54,000 to 2.56 million, the lowest level since November 2007. In the past four months continuing claims dropped at the fastest rate in four years.
In the past year, claims have been mostly down and near the levels before the recession. From 2004 to 2006, the average amount of weekly claims was 329,000, according to Labor Department data. In the first half of 2009, they were hitting 600,000 per week.
Stocks slid Thursday after a four-day record advance. Uncertainity due to tensions in Iraq and raising oil prices are causing Wall Street numbers to retreat. As a result, gold hit its highest level since May 22 at $1,300 an ounce.
What do you think of the state of the job market right now? Are you convinced the economy is improving? Leave a comment in the comments section below.
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