US unemployment benefit applications plunge to 15-year low

WASHINGTON (AP) -- The number of people seeking unemployment aid plunged last week to the lowest level in almost 15 years.<br /> <br /> Weekly applications dropped 43,000 to a seasonally adjusted 265,000, the Labor Department said Thursday. That is the lowest level since April 2000. It is also the biggest decline in two years. The four-week average, a less volatile measure, fell 8,250 to 298,500.<br /> <br /> The latest drop may have been exaggerated by the federal holiday, which likely slowed the processing of some claims.<br /> <br /> Still, applications are a proxy for layoffs, so the sharp decline means companies are probably cutting fewer jobs. The four-week average has fallen 11 percent in the past year. At the same time, hiring has picked up. Employers added almost 3 million jobs last year, the most since 1999. Strong economic growth has encouraged companies to add more workers.<br /> <br /> "This is good news," said Jennifer Lee, an economist at BMO Capital Markets. "But it was also a holiday-shortened week so there could be a special factor perhaps artificially deflating the number. A partial reversal next week ... should still show an improving labor market."<br /> <br /> Last week included the Martin Luther King Jr. holiday, when state unemployment offices were closed. That could have delayed the processing of some applications, a Labor Department spokesman said. The unemployed can apply for benefits online, though they are typically less likely to do so on a holiday. That suggests applications could rise next week.