Applications For Unemployment Benefits Plummet

[Purveyor]

Source: ASSOCIATED PRESS

The number of people applying for unemployment benefits plummeted last week, reversing nearly all the sharp rise reported the previous week.

The number of laid-off workers seeking benefits dropped 44,000 to a seasonally adjusted 434,000, the Labor Department said Thursday. That is the steepest weekly fall since February 2010.

The drop suggests that the increase of 47,000 reported last week was mostly due to temporary factors. The state of New York reported that applications jumped by more than 24,000 two weeks ago, because more school systems had spring break than usual. That led to a spike in temporary layoffs. A new extended benefits program in Oregon had caused applications to rise in that state.

Still, the latest applications figure is far above the 375,000 level typically consistent with sustainable job growth. Weekly applications peaked during the recession at 659,000.

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Read more: http://thedailyrecord.com/2011/05/12/applications-for-unemployment-benefits-plummet/