Unemployment Benefits 2014: Benefit Applications Slightly Rise But Stay at 14-Year Low
Two weeks ago, it was been reported that applications unemployment benefit claims plunged to a 14-year low at 264,000, and financial experts see this as a sign of a strengthened labor market that could help lessen the impact of a weak global growth.
According to the New York Times, Ian Sheperdson, chief economist at Pantheon Macroeconomics, described the report on unemployment claims as "astonishing."
"Whether claims can be sustained at such a low level — an all-time low, as a share of payroll employment—is debatable," he said. "But this is a clear signal of real strength in the labor market."
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Last week, the unemployment benefit claims slightly rose and totaled 280,000, but the increase is not considered as a sign of trouble in the U.S. job market. According to Businessweek, U.S. businesses have already been adding jobs at a steady pace, and the low rate of weekly applications in the past year suggests that companies could step up their hiring in the coming months.
Moreover, recent surveys have shown that employers have added an average of 227,000 jobs a month this year— a clear improvement over last year's 194,000 jobs per month. The number of available jobs climbed to a 13-year high in August, according to a separate government report released this month. The U.S. economy has gained 2.64 million jobs in the past 12 months, pushing the unemployment rate down to 5.9 percent, which is a six-year low.
The jobless claims report also showed that the number of people still receiving benefits after one week of aid fell 38,000 to 2.35 million in the week ended Oct. 11. This was the lowest recorded reading for the continuing claims since December 2000.
