Claims For Unemployment Benefits Down By 12,000
Submitted by Cheston Catalano
Increased hiring and fewer filings for unemployment show August to be a good month for the jobs picture.
On Thursday, the Labor Department said applications for jobless benefits declined 12,000 to a seasonally adjusted 365,000. Weekly applications are a measure of the pace of layoffs. When the level is consistently below 375,000, hiring is generally strong enough to lower the unemployment rate.
Further evidence the economy may be improving: Service companies grew at a faster pace in August than the month before. The Institute for Supply Management’s index of non-manufacturing activity rose in August to 53.7. That’s up from July’s reading of 52.6, according to the trade group of the nation’s purchasing managers. Any reading above 50 indicates expansion.