WASHINGTON — More Americans sought unemployment aid last week, but the number of applications was still at a low level that suggested hiring is healthy.þþTHE NUMBERS: Applications for unemployment benefits rose 14,000 to a seasonally adjusted 266,000, the Labor Department said Thursday. The four-week average, a less volatile measure, slipped 1,000 to 256,500.þþThe number of Americans receiving benefits ticked up 7,000 to 2.14 million. Still, that's down nearly 6 percent from a year ago.þþTHE TAKEAWAY: Weekly applications are a proxy for layoffs. They are at historically low levels that suggest businesses are confident enough about the future to hold onto their employees.þþThe number of people seeking aid has been below 300,000 for 73 straight weeks, the longest streak since 1973. When layoffs are low, hiring is typically solid.þþCompanies have tapped the brakes on hiring this spring, but are still adding enough new workers to lower the unemployment rate over time. Monthly job gains averaged 147,000 in the April-June quarter, down from 196,000 in the first three months of the year.þþHiring nearly came to a halt in May, when employers added just 11,000 jobs. That suggested employers were turning cautious after a slump in growth in the first quarter. But hiring roared back in June, when employers added 287,000 jobs, the most in eight months.þþThe unemployment rate rose to 4.9 percent in June from 4.7 percent, still a historically solid level.þþKEY DRIVERS: After hitting a soft patch at the start of the year, the economy likely accelerated in the second quarter, buoyed by stronger consumer spending and solid gains in home sales and construction.þþEconomists expect that will boost growth in the April-June quarter to an annual rate of about 2.5 percent, up from just 1.1 percent in the first three months of the year.
Source: NY Times
