Skip to main content
Advertising

Originally published November 27, 2013 at 5:56 AM | Page modified November 27, 2013 at 10:37 AM

  • Share:
           
  • Comments (0)
  • Print

US jobless claims drop to 316,000, as layoffs slow

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.


AP Economics Writer

Most Popular Comments
Hide / Show comments
No comments have been posted to this article.
Start the conversation >

advertising

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.



News where, when and how you want it

Email Icon

Love the column? Pre-order the book!

Love the column? Pre-order the book!

Reserve your copy of "The Seattle Sketcher," the long-awaited book by staff artist Gabriel Campanario, for the special price of just $29.95.

Advertising

Advertising


Advertising
The Seattle Times

The door is closed, but it's not locked.

Take a minute to subscribe and continue to enjoy The Seattle Times for as little as 99 cents a week.

Subscription options ►

Already a subscriber?

We've got good news for you. Unlimited seattletimes.com content access is included with most subscriptions.

Subscriber login ►