The number of people seeking unemployment benefits fell last week below 400,000 for the first time in four months, a sign that the job market is improving slowly after a recent slump. Applications for unemployment aid dropped by 7,000 to a seasonally adjusted 395,000, the Labor Department said Thursday. Applications had been above 400,000 for the previous 17 weeks. The four-week average, a less-volatile figure, fell to 405,000, its sixth consecutive decline, suggesting applications are decreasing over time.
Applications fell in February to 375,000, a level that reflects healthy job growth. They soared to an eight-month high of 478,000 in late April, and have declined slowly since then. The economy added 117,000 net jobs in July, the government said last week. That was an improvement from the previous two months. But it’s far below the average of 215,000 jobs per month that companies created from February through April. Many employers pulled back on hiring after signs emerged that the economy had weakened from last year. High gas prices and scant wage gains left consumers with less money to spend on discretionary purchases, such as appliances, furniture and electronics. Supply chain disruptions caused by the Japan crisis also dampened U.S. factory production.
