The number of people applying for unemployment benefits fell last week to the lowest level in seven weeks, although applications remain elevated.
The labour department said Thursday that applications for benefits dropped by 14,000 to a seasonally adjusted 4,18,000. The four-week average, a less volatile measure, declined for the first time in four weeks, to 4,24,750.
Applications have topped 4,00,000 for 13 weeks, evidence the job market has weakened since the beginning of the year. Applications had fallen in February to 3,75,000, a level that signals sustainable job growth. They stayed below 4,00,000 for seven of the next nine weeks. But then applications surged to an eight-month high of 4,78,000 in April and have shown only modest improvement since.
The department says that about 2,500 applications in Minnesota were from state employees temporarily laid off because of a state government shutdown.
Stock rose after payroll processor ADP said the private sector added 1,57,000 jobs last month. That was more than double what economists had forecast. The Dow Jones industrial average gained 72 points in early-morning trading, and broader indexes also rose.
Source : New Age
