WASHINGTON — A steady decline in the number of people applying for weekly unemployment benefits is the latest signal that the economy has strengthened and businesses may be poised to step up hiring.
Applications fell last week to a seasonally adjusted 381,000, the Labor Department said Thursday. That’s the lowest level since late February. And a four- week average for applications, which smooths week-to-week fluctuations, fell for the ninth time in 11 weeks to an eight-month low.
The downward trend in unemployment-benefit applications bolsters the view that the economy has improved from its spring slump, when many feared another recession was likely. Consumer confidence is up, retailers reported a strong start to the holiday shopping season and the unemployment rate fell last month to its lowest point in 2 1/2 years.
“There have been numerous indications that the labor market is healing, and today’s jobless-claims report only reinforces that view,” said Dan Greenhaus, chief global strategist at BTIG, a trading firm.
Applications that consistently drop below 375,000 tend to correlate with a decline in the jobless rate. The Associated Press
