WASHINGTON (AP) — Fewer people sought U.S. unemployment benefits last week, driving down the level of applications to nearly the lowest in seven years.
Weekly applications for unemployment aid dropped 11,000 to a seasonally adjusted 304,000, Labor Department officials said today. That's not far from a reading of 298,000 two months ago, which was the lowest since 2007, before the Great Recession began.
The four-week average, a less-volatile measure, dipped 3,500 to 311,500, the second-lowest level since August 2007. Applications are a proxy for layoffs, so the low readings indicate that employers are letting go of fewer workers.
The figures are the latest sign that the job market is steadily improving. Employers are adding jobs at a healthy clip and the unemployment rate is at a 5 1/2-year low.
"The ... data remain extremely encouraging," said Jim O'Sullivan, chief U.S. economist at High Frequency Economics. The four-week average is down from last year's average of 343,000, he noted.
Still, some economists warned that the figures could be volatile in the weeks ahead. That's because auto manufacturers typically close their plants in July to prepare for new models to be released in the fall. That can cause spikes in temporary layoffs.