The number of people seeking unemployment benefits plunged last week to the lowest level in four years, a hopeful sign for the job market. But the decline was partly due to temporary factors.
The Labor Department says weekly applications dropped 26,000 to a seasonally adjusted 350,000, the lowest level since March 2008. The four-week average fell to 376,500.
When applications consistently fall below 375,000, it generally suggests hiring is strong enough to reduce the unemployment rate.
Still, special factors affected the report. Automakers have traditionally closed their plants for the first two weeks in July to prepare them to build new car models. But this year they are limiting the shutdowns to boost production. That resulted in fewer temporary layoffs than is normally the case in early July.
Copyright 2015 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
KKTV firmly believes in freedom of speech for all and we are happy to provide this forum for the community to share opinions and facts. We ask that commenters keep it clean, keep it truthful, stay on topic and be responsible. Comments left here do not necessarily represent the viewpoint of KKTV 11 News.
If you believe that any of the comments on our site are inappropriate or offensive, please tell us by clicking “Report Abuse” and answering the questions that follow. We will review any reported comments promptly.powered by Disqus