The number of American applying for unemployment benefits for the first time last week, declined by 8,000 to a seasonally adjusted 355,000, the Labor Department said Thursday. Analysts had estimated that initial claims would be 365,000.
However, although the figures are trending in the right direction, according to news reports, one state failed to file initial claims due to lack of electricity.
Applications for unemployment benefits measures the pace of layoffs. Economists suggest that when they fall consistently below 375,000, it implies that hiring is strong enough to lower the jobless rate.
