Fewer people applied for unemployment benefits last week, a sign that the job market may be improving slightly. Weekly applications fell 12,000 to a seasonally adjusted 409,000 last week, the Labor Department says. It was the first decline in three weeks. A strike by Verizon workers, now ended, drove applications higher during the previous two weeks. The four-week average, a less volatile measure, rose last week to 410,250. It’s thought that increase occurred mostly because of the strike. The average has come down from 440,250 in May. Applications typically need to drop below 375,000 to signal sustainable job growth; they haven’t been at that level since February. The downward unemployment trend suggests businesses aren’t stepping up layoffs amid renewed concerns about the economy’s health. A sharp reduction in growth has fueled fears that the economy could be at risk of another recession.
U.S. unemployment benefit applications fall
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