Wednesday, November 26th0.3°C
24157
24056

Applications for US unemployment benefits dipped last week, latest sign of scant layoffs

WASHINGTON - The number of Americans seeking unemployment benefits declined last week, the latest evidence that a sharp economic slowdown earlier this year hasn't caused employers to cut jobs.

Weekly unemployment benefit applications fell 2,000 to a seasonally adjusted 312,000, the Labor Department said Thursday. The four-week average, a less volatile measure, rose 2,000 to 314,000.

The average has fallen 9 per cent since the beginning of this year. Applications are a proxy for layoffs, so the declines indicate that companies are cutting fewer jobs.

The figures come a day after the government said the economy shrank at a 2.9 per cent annual rate in the first three months of the year, the worst reading since early 2009, when the U.S. was mired in the depths of the recession.

The number of people actually receiving benefits inched up by 12,000 to 2.57 million. But the small increase comes after the level fell to a six-year low in the previous week.

When businesses are confident enough to keep staff, they are also likely to hire more people.

The low level of applications indicates employers haven't been rattled by the first quarter's dismal showing, which many economists have partly blamed on bad weather. If businesses feared the economy was tumbling into a recession, they would likely ramp up layoffs.

Instead, they are hiring at a healthy pace. Employers added 217,000 jobs in May, the fourth straight month of gains above 200,000. That's the first such stretch since 1999. The unemployment rate remained 6.3 per cent in May, the lowest in more than five years.

Other data also suggest the economy has recovered from the bad first quarter. Factory output is rising, auto sales have reached a nine-year high and businesses are ordering more equipment.

Most analysts forecast the economy will expand at a 3.5 per cent annual rate or higher in the April-June quarter, and at a 3 per cent rate in the second half of the year.

The Canadian Press


Read more Business News

23872


Recent Trending




Today's Market
S&P TSX15073.65+58.24
S&P CDNX780.64-6.86
DJIA17814.94-2.96
Nasdaq4758.252+3.36
S&P 5002067.03-2.38
CDN Dollar0.8867-0.0017
Gold1195.20-1.90
Oil74.03-0.06
Lumber328.80-0.70
Natural Gas4.295+0.144

 
Okanagan Companies
Pacific Safety0.16-0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.32+0.04
Cantex0.040.00
Anavex Life Sciences0.175-0.005
Metalex Ventures0.030.00
Russel Metals32.14+0.65
Copper Mountain Mining2.15-0.02
Colorado Resources0.130.00
ReliaBrand Inc0.0134-0.0001
Sunrise Resources Ltd0.045-0.005
Mission Ready Services0.325-0.04

 
23744


24243

FEATURED Property
2145125Mimosa
2 bedrooms 2 baths
$244,500
more details
image2image2image2
Click here to feature your property
Please wait... loading


The last great Canadian tax shelter

A guide to how flow-through fund limited partnerships can mightily aid your tax planning!The end of the year will raise concerns among many professionals, self-employed persons, business owners and ev...


What I learned in China: Part 2

As per my previous article on my visit to China, we have much to learn about and from their people. It is potentially the largest market on earth with 1.3 billion people in one country but much will d...


Retirement: Health Issues

Our health is really our greatest asset and maintaining our health is of tremendous importance. You want to do what you can to ensure that health issues will not jeopardize the enjoyment of your retir...

_



24231

24119


Member of BC Press Council


22842