The number of Americans initially applying for unemployment aid last week plunged below 375,000, a threshold to signal a sustained drop in the unemployment rate, the U.S. Labor Department reported Thursday.
The Labor Department said that the advance figure for seasonally adjusted initial claims for jobless benefits was 368,000 in the week ending Feb. 26, a decrease of 20,000 from the prior week's revised figure.
The fresh figure reached the lowest level since May 2008. The number of jobless claims below 375,000 is said to signal a sustained drop in the unemployment rate.
Meanwhile, the four-week moving average, which is a more closely watched claims figure, fell to 388,500 from the previous week's revised average of 401,250. This was also the lowest level since July 2008, the last time the four-week average was below 400,000.
The advance figure for seasonally adjusted insured
unemployment during the week ending Feb.19 was 3.774 million, a decrease of 59,000 from the previous week.
Economists believe the decline in jobless claims is a hopeful sign to suggest that businesses are easing the pace of layoffs now that the economy is gaining momentum. Moreover, U.S.
companies are expected to add hiring in the month ahead.
In recent months, the U.S. labor market has seen constant improving, with unemployment rate dropping to 9 percent in January, the lowest level in nearly two years. The private- sector jobs also increased by 217,000 in February, which was higher than the median estimate of a 180,000 gain, according to the National Employment Report released Wednesday by
Automatic Data Processing, Inc. (ADP).
The weekly figures of jobless benefits application reflect the level of layoffs and indicate real-time condition of American job market.