The number of people seeking US unemployment aid dropped to the lowest level in 14 years last week, the latest signal that companies are cutting fewer workers and hiring could remain healthy.
The Labor Department said today that weekly applications for unemployment aid fell 23,000 to a seasonally adjusted 264,000, the lowest level since April 2000. Given that the US population has grown considerably since then, the proportion of the US workforce applying for benefits is even smaller. Applications are a proxy for layoffs.
The figures come as concerns about slowing global economic growth have roiled financial markets for the past week. A drop in US retail sales, reported yesterday, intensified the volatility. The Dow plunged 460 points early yesterday before recovering, but still closed down 173 points. Futures tumbled sharply today about two hours before the opening bell.
The four-week average of applications, a less volatile measure, dropped 4,250 to 283,500, the lowest level since June 2000.
Consumers have remained cautious about spending even as employers have stepped up hiring. Retail sales fell 0.3 percent in September, the Commerce Department said yesterday.
Still, employers added 248,000 jobs last month and hiring in the previous two months was healthier than previously believed, the government said earlier this month. That helped push down the unemployment rate down to 5.9 percent, a six-year low.
The economy has added 2.64 million jobs in the past 12 months, the best annual showing since April 2006.
The number of available jobs soared to a 13-year high in August, according to a separate government report. That suggests employers will keep adding jobs at a healthy clip in the coming months.
Yet companies have been wary about filling positions, frustrating many job-seekers. Some employers say they can't find workers with the right skills. Many economists, however, say that firms may not be offering high enough pay to attract qualified applicants.
