U.S. jobless claims in decline

WASHINGTON — The number of Americans seeking unemployment benefits dropped 10,000 last week to a seasonally adjusted 316,000, a sign that workers are in less danger of being laid off.

The less volatile four-week average fell 7,500 to 331,750, the Labor Department said Wednesday. Both the first-time weekly jobless claims and the average have returned to pre-recession levels.

Unemployment benefit applications are a proxy for layoffs. They have fallen in six of the past seven weeks.

A government spokesman said there were no special factors that drove claims lower but cautioned that it can be difficult to seasonally adjust in late November because the Thanksgiving holiday occurs at different times each year. This year Thanksgiving is a week later than last year.

Still, the broader trend has been encouraging. As layoffs have dwindled, hiring has picked up. Employers added 204,000 jobs last month, indicating that companies were undeterred by the 16-day government shutdown. Private businesses added 212,000 new positions, the most since February.

“If claims can trend at anything like this level through the inevitable noise of Thanksgiving and then the holiday season, that would mark a real improvement on the pre-shutdown period and would be consistent with stronger payroll growth,” said Ian Shepherdson, chief economist for Pantheon Macroeconomics, in a client note.

The economy has added an average of 202,000 jobs a month from August through October, up from 146,000 in May through July.

The total number Americans claiming unemployment benefits through the first full week of November was 3.9 million, down from 5.2 million a year ago.

Greater employment typically boosts income, which helps drive more economic growth. Consumers’ spending accounts for roughly 70 percent of economic activity.

Still, the unemployment rate remains high at 7.3 percent. That’s well above the 5 percent to 6 percent unemployment rate consistent with healthier job markets. When unemployment is lower, workers have more flexibility to change jobs.

Job growth is a major factor for the Federal Reserve in deciding when to reduce its economic stimulus. The Fed has been buying $85 billion in bonds each month to keep long-term interest rates low and encourage borrowing and spending.

More in Herald Business Journal

Boeing could help launch orbiting space station for the moon

“We should have a lunar base by now. What the hell has been going on?”

How the Airbus-Bombardier alliance could squeeze Boeing

“It makes Boeing look like they’ve been playing tic tac toe against a chess master,” says an analyst.

More self-awareness could help build a better medical system

Marcy Shimada of Edmonds Family Medicine writes the second in a series about fixing our health care system.

Scratch-and-sniff brochures aimed to prevent disaster

Puget Sound Energy has distributed more than a million scratch-and-sniff brochures to… Continue reading

Jewelry, accessories store Fuego opens second site in Snohomish County

Northwest-based jewelry, accessories and gifts store Fuego opened a new outlet store… Continue reading

Extreme cleaning company Steri-Clean opens in Mukilteo

The first Washington franchise of the Steri-Clean company will celebrate its grand… Continue reading

Justices to hear government’s email dispute with Microsoft

A lower court ruled emails in a drug case couldn’t be searched because they were in Ireland.

Negotiators give up hope of rewriting NAFTA this year

A fourth round of negotiations between the U.S., Mexico and Canada ended in mutual exasperation.

Facebook acquires TBH, an anonymous teen compliment app

TBH, short for “to be honest,” prompts users to answer polls about people they know.

Most Read