US unemployment aid applications drop to 284,000

AP Unemployment Benefits
In this photo taken Wednesday, July 16, 2014, job seeker U.S. Army veteran John Godman, right, talks to recruiters Nicole Rushton, left, and Megan Hogan, center, at a Hiring Fair For Veterans in Fort Lauderdale, Fla. The Labor Department releases weekly jobless claims on Thursday, July 23, 2014. (AP Photo/Alan Diaz)

WASHINGTON (AP) — The number of people seeking U.S. unemployment benefits fell last week to its lowest level in eight years.

The Labor Department says weekly applications for unemployment aid dropped 19,000 to a seasonally adjusted 284,000. That’s the lowest reading since February 2006, nearly two years before the Great Recession began.

The four-week average, a less volatile measure, declined 7,250 to 302,000. Claims for jobless aid have been falling for the past three months.

Applications are a proxy for layoffs. When businesses hold onto staff, increased hiring and stronger economic growth often follows.

Hiring is at its healthiest clip since the late 1990s and the 6.1 percent unemployment rate is at a 5 1/2-year low. Employers added 288,000 jobs in June, the fifth straight month of job gains above 200,000.

 

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