The number of Americans seeking unemployment aid fell last week to the lowest level in five years, evidence that employers are cutting fewer jobs and may step up hiring. And another measure of the United States economy intended to signal future activity increased in December from November, suggesting growth may strengthen in 2013.
The Labor Department said weekly unemployment benefit applications dropped 5,000 to a seasonally adjusted 330,000. That is the fewest since January 2008. The four-week average, a less volatile measure, fell to 351,750. That is also the lowest in nearly five years.
The decline may reflect the government’s difficulty adjusting its numbers to account for layoffs after the holiday shopping season. Layoffs typically spike in the second week of January and then plummet. The department seeks to adjust for those trends, but the figures can still be volatile.
Applications are a proxy for layoffs. While layoffs are falling, hiring has been modest in recent months.
The Conference Board says its index of leading indicators rose 0.5 percent in December, the best showing since September. In November, the index was unchanged. The gauge is intended to anticipate economic conditions three to six months out.
A decline in applications for unemployment benefits, gains on Wall Street and increases in applications for building permits drove the index higher in December.
U.S. Jobless Claims Reach Lowest Mark in Five Years
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U.S. Jobless Claims Reach Lowest Mark in Five Years
