For those of us tentatively watching for signs of improvement in the U.S. job economy, last week’s drop in filed applications for unemployment benefits was something to cheer about.
According to the Labor Department, April was a one-month low with jobless claims falling 27,000 to 365,000 – the most in more than three months.
“I think these numbers prove to provide a hopeful message for tomorrow’s jobs report,” said Kavaliro Managing Partner Bill Peppler. “These numbers are consistent with what Kavaliro is currently seeing in our current client landscape. The numbers for highly skilled and specialized skill sets such as finance and technology continue to have much lower unemployment numbers than the general population.”
Last month the rise in applications for unemployment benefits was a surprise after several months of steady decline. Many were concerned that hiring slowed down and worried that the market was worsening. But, according to economists interviewed by the AP, the spring holidays’ temporary layoffs may have boosted benefit applications.
“Applications are a measure of the pace of layoffs,” according to the Associated Press. “When they fall below 375,000, it generally suggests that hiring will be strong enough to lower the unemployment rate.”
- Tyger Danger