First-time claims for unemployment benefits for the past four weeks are at their lowest level in more than 14 years, the Labor Department said Thursday. The four-week moving average of claims was 279,000, a drop of 2,250 from the previous week’s slightly revised average.
That’s the lowest level for that average since April 29, 2000 when it was 273,000. Economists watch the four-week average closely because it smooths out volatility in the weekly numbers. But first-time claims for the week ending Nov. 1 also fell, dropping 10,000 to a seasonally adjusted 278,000 from the previous week’s revised level.
Initial claims for unemployment benefits are a barometer of layoffs so declining numbers of claims is a sign of an improving labor market. Since June, weekly initial claims have averaged 293,000, well last year’s average of 343,000. They averaged nearly 594,000 in 2009. Other labor indicators also point to better climate for jobseekers. Payroll processor ADP said Wednesday that private employers added 230,000 jobs in October, the sixth month this year that net additions exceeded 200,000.
Economists also are looking for solid gains in the Labor Department’s October employment report coming Friday. Action Economics’ survey shows their median forecasts are for combined business and government sector payroll gains of 230,000 and an unchanged 5.9% unemployment rate.