11-14-2014, 02:09 PM
Fewer people applied for US unemployment benefits last week, a sign that the labor market should continue to improve.
The Labor Department said Thursday that downloads of applications fell by a seasonally adjusted 2, 10000 78 000. On average, four weeks less volatile measure, declined in 2250 to 2, 79,000, the lowest level in more than 14 years.
Applications are a proxy for layoffs and fell 18.5 percent last year. This involves the growth of economic confidence among businesses, forcing them to keep their employees and potentially looking to hire more employees.
Decline in applications intersects with stronger hiring in 2014.
Employers have added an average of 2, 27,000 jobs a month in 2014 to an average of 1, 94,000 in 2013. Over the past 12 months, employers added 2,640,000 jobs, the best showing since April 2006. The unemployment rate fell to 5.9%, 6 year low.
Economists predict that the job report on Friday will show that 2, 30,000 jobs were added in October. It is expected that the unemployment rate remain high.
US companies added 230,000 jobs in October, said the wage processer ADP on Wednesday. The result was the highest in four months and a sign that companies are still willing to hire despite signs of slowing growth abroad. Job gains greater than 2, 00,000, is usually enough to reduce the unemployment rate.
Nevertheless, improvements in employment has yet to translate into higher wages. Average wages grew slightly faster than inflation. The average annual household income of $ 54.045 is 4.6% lower than the income, when the recession began in late 2007, according to the Sentier study.
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