Jobs & Hiring Update 2014: Jobless Claims Fall Again; Layoffs Declining?
The number of new jobless claims in the U.S. fell again last week, likely suggesting that employers are slowing layoffs and that the economy is improving.
The U.S. Department of Labor released a report on Thursday showing that new claims for unemployment benefits fell by 8,000 last week over the previous week to a seasonally adjusted rate of 287,000, according to a report from the Wall Street Journal.
Economists had predicted that that a total of 297,000 people would file new jobless claims last week. The four-week moving average of new jobless claims, which economists prefer because it decreases volatility, fell by 4,250 to 294,750.
The four-week moving average has been hanging right around 300,000 new claims per week since July. That level is comparable to those often seen in 2007, Reuters reported.
"The trends in the main figures of the claims report generally point to continued improvement in the labor market," said J.P. Morgan Chase economist Daniel Silver.
Labor Department figures showed that two weeks ago nearly 2.34 million people continued their claim for unemployment benefits, down by 45,000 from the previous week. Those figures are released a week later than new unemployment claims.
The jobless figures indicate that employers have decreased layoffs as the U.S. trudges in a positive direction. Fewer people who are laid off are choosing to file jobless claims, as workers are most optimistic about quickly finding new jobs.
While layoffs are falling, hiring is increasing. The private sector added 213,000 jobs in September, according to Automatic Data Processing. Economists had projected that employers would add 202,000 jobs.
The Labor Department on Friday is expected to released its monthly jobs report, and economists are predicting that it will show private- and public-sector job growth of 215,000 in September.
The U.S. unemployment rate is 6.1 percent, which is high by historical standards, and many economists say that figure is too optimistic since it doesn't include those who have stopped looking for a job.
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