US unemployment aid applications plummet to 346K

April 11, 2013 @ 5:53 am

WASHINGTON (AP) - The number of Americans seeking U.S. unemployment benefits fell sharply last week to a seasonally adjusted 346,000, suggesting March's weak month of hiring may be a temporary slowdown.

Weekly unemployment aid applications dropped by 42,000 last week, the Labor Department said Thursday. The steep decline reversed sharp gains over the previous two weeks and brought the level back to a point that signals stronger job growth.

The four-week average, a less volatile measure, rose 3,000 to 358,000.

The data have been volatile in the past two weeks largely because of the Easter holiday, a department spokesman says. The timing of the holiday changes from year to year. That makes it difficult to adjust for school holidays that can cause temporary layoffs.

Employers added only 88,000 jobs in March after averaging 220,000 the previous four months. The drop in unemployment benefits could signal that more solid hiring could return in April.

The unemployment rate fell to a four-year low of 7.6 percent last month, down from 7.7 percent in February. However, the rate fell only because more people stopped looking for work and were no longer counted as unemployed.

Applications are a proxy for layoffs. Any decline in applications would signal that companies are laying off fewer workers.

Still, layoffs are only half of the equation. Businesses also need to be confident enough in the economic outlook to add more jobs.

Economists predict that economic growth accelerated in the January-March quarter to an annual rate of 3 percent. That would be a vast improvement from the rate of 0.4 percent in the October-December, which was held by steep defense cuts and slower restocking.

One concern is that across-the-board government spending cuts that began on March 1 will shave a half-percentage point from growth this year. That may have also made businesses cautious about hiring last month.


(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)
More National News
Top Stories

  • Otherworldly
    Amazon has new plans for huge biospheres on its new campus

  • One
    Microsoft calls its new Xbox 'truly intelligent TV'

  • Skillet Spreads
    Seattle's Skillet Street Food and its creator are growing way beyond the Airstream
MyNorthwest.com - Purpose of Comments statement
Bonneville Media encourages site users to express their opinions by posting comments. Our goal is to maintain a civil dialogue in which readers feel comfortable. At times, the comments can descend to personal attacks. Please do not engage in such behavior. We encourage your thoughtful comments which: have a positive and constructive tone, are on topic, are respectful toward others and their opinions. Bonneville reserves the right to remove comments which do not conform to these criteria.

Comments (6)


  • Add A Comment

  • It's me! Ha ha! wrote...
    I am so glad that
    April 14, 2011 10:43 am
    the economy is improving under the Dear Leader and his policies.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • EskieMom wrote...
    What happens next?
    September 15, 2011 7:19 am
    Our unemployment will run out soon. No work for close to two years!! Hundreds of applications sent, a few interviews, but no job. So depressing. And what will we live on when the unemployment does run out? Savings already used up. Scared.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • SickofSeattleite wrote...
    the only evidence i see...
    March 29, 2012 5:35 am
    is that many applicants have officially milked it as long as possible and no longer qualify......so obviously there would be a decline. Duh.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • 509 wrote...
    Labor Force Participation Rate....
    May 10, 2012 7:08 am
    When Obama took office: 65.7% Today 63.6%. Where did all these workers go?? Well, at least the bankers STILL have a job and their bonuses.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • Fuego wrote...
    Nothing...
    July 12, 2012 5:26 am
    on the near horizon would indicate that the job market is going to improve. With the recent news of some cities declaring bankruptcy my guess is things will get worse before they get better.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • hnuh wrote...
    09-20-2012 US unemployment claims fell last week...
    September 20, 2012 8:22 am
    Go to zerohedge.com to see the reason this headline could be written. It is instructive, and a prophylactic against the media propaganda the headline represents.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • { "Thumbs Up":"1","Thumbs Down":"-1" }