US jobless aid applications fall to 5-year low
WASHINGTON (AP) - The average number of people seeking unemployment benefits over the past month fell to the lowest level since March 2008, a sign that the job market is healing.
The Labor Department said Thursday that weekly applications dropped 12,000 to a seasonally adjusted 350,000 in the week ended Dec. 22. The four-week average, a less volatile measure, fell to a nearly five-year low of 356,750.
Still, the figures were affected by the Christmas holiday. A department spokesman said many state unemployment offices were closed Monday and Tuesday and unable to compile complete data. Fourteen states provided estimates and the department estimated the numbers for five additional states.
The government might estimate one or two states in a typical week, but 19 state estimates are unusually high.
Weekly applications are a proxy for layoffs. They have mostly fluctuated this year between 360,000 and 390,000. At the same time, employers have added an average of 151,000 jobs a month in the first 11 months of 2012. That's just enough to slowly reduce the unemployment rate.
The recent decline in unemployment benefit applications suggests companies are not yet slashing jobs because of concerns over the "fiscal cliff." That's the name for sharp tax increases and spending cuts that are scheduled to take effect next week unless the Obama administration and Congress can reach a deal before then.
Still, unemployment remains high and companies are reluctant to ramp up hiring. The unemployment rate fell to 7.7 percent in November from 7.9 percent in October mostly because many of the unemployed stopped looking for jobs. The government counts people as unemployed only if they are actively searching for work.
Negotiations between President Barack Obama and House Republican leaders on a package to avoid the fiscal cliff stalemated last week. Obama and congressional lawmakers return to Washington Thursday with just days to go before the deadline.
There are signs the economy is improving. The once-battered housing market is recovering, which should lead to more construction jobs in the coming months. Companies ordered more long-lasting manufactured goods in November, a sign they are investing more in equipment and software. And Americans spent more in November. Consumer spending drives nearly 70 percent of economic growth.
While a short fall over the cliff won't push the economy into recession, most economists expect some tax increases to take effect next year. That could slow growth.
Consumers are starting to worry about higher taxes. A measure of consumer confidence fell to a five-month low this month, a survey released Friday found. And reports show the holiday shopping season was the weakest since 2008, when the country was in a deep recession.
The Labor Department said Thursday that weekly applications dropped 12,000 to a seasonally adjusted 350,000 in the week ended Dec. 22. The four-week average, a less volatile measure, fell to a nearly five-year low of 356,750.
Still, the figures were affected by the Christmas holiday. A department spokesman said many state unemployment offices were closed Monday and Tuesday and unable to compile complete data. Fourteen states provided estimates and the department estimated the numbers for five additional states.
The government might estimate one or two states in a typical week, but 19 state estimates are unusually high.
Weekly applications are a proxy for layoffs. They have mostly fluctuated this year between 360,000 and 390,000. At the same time, employers have added an average of 151,000 jobs a month in the first 11 months of 2012. That's just enough to slowly reduce the unemployment rate.
The recent decline in unemployment benefit applications suggests companies are not yet slashing jobs because of concerns over the "fiscal cliff." That's the name for sharp tax increases and spending cuts that are scheduled to take effect next week unless the Obama administration and Congress can reach a deal before then.
Still, unemployment remains high and companies are reluctant to ramp up hiring. The unemployment rate fell to 7.7 percent in November from 7.9 percent in October mostly because many of the unemployed stopped looking for jobs. The government counts people as unemployed only if they are actively searching for work.
Negotiations between President Barack Obama and House Republican leaders on a package to avoid the fiscal cliff stalemated last week. Obama and congressional lawmakers return to Washington Thursday with just days to go before the deadline.
There are signs the economy is improving. The once-battered housing market is recovering, which should lead to more construction jobs in the coming months. Companies ordered more long-lasting manufactured goods in November, a sign they are investing more in equipment and software. And Americans spent more in November. Consumer spending drives nearly 70 percent of economic growth.
While a short fall over the cliff won't push the economy into recession, most economists expect some tax increases to take effect next year. That could slow growth.
Consumers are starting to worry about higher taxes. A measure of consumer confidence fell to a five-month low this month, a survey released Friday found. And reports show the holiday shopping season was the weakest since 2008, when the country was in a deep recession.
And here's a news flash, job less filers are going to fall next week due the ending of EUC
Either people stopped looking or more people ran out of benefits...of course I do not expect us to allow people to sit and collect unemployment for 3+ years.... their is a time when it is time to fish or cut bait .. and I can say for sure I would be cutting a lot of bait. I have had to fire two people I hired for a position because they did NOT have any sort of work ethic and did not do what I hired them to do. Those sort of people have a grim future if they expect modern times to allow for people to go around slacking like they did four-six years ago... companies are trimming down and there is a endless supply of people wanting some of these jobs so if you have one or just got one do not let up as you are expected to do the job you are paid for!
 @Freespeech What kind of work are you hiring for ?
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I'm available...
It's amazing how ignorant journalist are. What did they do during four years of higher education? The reason apps are down isn't because there are more jobs, it's because people are giving up.Â
US dept of Labor reports that the workforce participation rate fell .2 from Oct to Nov and has no numbers for Dec '12 yet.
350,000 new applications for unemployment seems like a huge number of new people becoming unemployed in just one year that would be 4,200,000 people. Of course some get new jobs fairly soon but others have a problem finding employment. That's over 1/2 of the population of Seattle in just one month and how many of those jobs disappeared because they were shipped overseas?
 @jcman Contrary to popular opinion, there isn't a shortage of jobs, only those jobs that pay a high enough wage to support one self or a family...