Despite an Increase in Unemployment Applications, 2014 Is On Track to Be Best Hiring Year Since 1999
The number of out-of-work citizens seeking U.S. unemployment benefits has just jumped in the last week. Applications are above the 300,000 mark for the first time in almost three months.
According to a statement made by the Labor Department on Wednesday cited by The Associated Press, weekly applications rose 21,000 to a seasonally adjusted 313,000. This is the highest level since the first week of September. The four-week average rose from 6,250 to 294,000.
The increase in the number of applicants looking for unemployment is, however, not likely to raise concerns about the broader health of the job market, as some of this increase can be attributed to seasonal layoffs in business, such as construction related jobs that are directly affected by winter weather.
Previously the number of applicants had remained under 300,000 for 10 straight weeks, a sign which would indicate that companies were laying laying off fewer workers.
Despite the increase, the number of applications is still far below where it was a year ago. Currently, the average hourly pay rose 3 cents in October to $24.57, which is just 2 percent above the average wage 12 months earlier.
"Though we have seen increases over the past three weeks in the four-week average, the trend in claims remains relatively low," Derek Lindsey, an economist at BNP Paribas, said in a note to clients according to AP.
The fall in applications for unemployment benefits has been met with stronger job gains, as employers have added an average of 229,000 jobs a month this year. This puts 2014 on track to be strongest year for hiring since 1999, which is up from an average of 194,000 last year. The unemployment rate has fallen to 5.8 percent, a six-year low that is down from 7.2 percent a year ago.
Economists estimate that the percentage of laid off workers who apply for benefits is lower than it was just after the recession ended five years ago.
Just a quarter of the 9 million Americans who are officially unemployed are actually receiving unemployment aid.
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