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VOL. 127 | NO. 68 | Friday, April 06, 2012

Unemployment Hits 4-Year Low

By CHRISTOPHER S. RUGABER

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WASHINGTON (AP) – The number of people seeking U.S. unemployment benefits fell to a four-year low last week, suggesting employers kept hiring in March at a healthy pace.

Weekly applications dropped 6,000 to a seasonally adjusted 357,000, the Labor Department said Thursday. That’s the fewest since April 2008.

The four-week average, a less volatile measure, fell to 361,750, also the lowest in four years.

Applications have been steadily declining since last fall. The four-week average fell 4 percent in the January-March quarter, after dropping 8 percent in the final three months of last year.

When unemployment benefit applications drop consistently below 375,000, it usually signals that hiring is strong enough to lower the unemployment rate.

The downward trend in applications is a promising sign ahead of Friday’s report on March job growth. Employers added an average of 245,000 jobs per month from December through February. And the unemployment rate has fallen from 9.1 percent in August to 8.3 percent in February, the lowest in three years.

Economists forecast that employers added 210,000 jobs last month, although they expect the unemployment rate was unchanged for the second straight month.

Yet, greater hiring hasn’t led to bigger paychecks. Americans’ income grew just 0.2 percent in February, matching January’s weak increase. And after taking inflation into account, income after taxes fell for a second straight month. Consumers have boosted their spending by saving less, which economists worry isn’t sustainable.

And some companies are still letting workers go. Yahoo said Wednesday that it is cutting 2,000 jobs, or 14 percent of its workforce. It is the Internet company’s sixth mass layoff in the past four years.

The number of people receiving benefits fell to 7.1 million in the week ended March 17, the latest data available. That’s about 100,000 fewer than the previous week. The figure includes about 3.3 million people receiving extended benefits under federal programs put in place during the recession.

Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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RECORD TOTALS DAY WEEK YEAR
PROPERTY SALES 69 311 15,028
MORTGAGES 83 338 19,668
FORECLOSURE NOTICES 15 58 3,853
BUILDING PERMITS 0 512 35,842
BANKRUPTCIES 65 247 14,281
BUSINESS LICENSES 16 120 5,111
UTILITY CONNECTIONS 70 316 21,749
MARRIAGE LICENSES 18 93 4,650

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