Jobless claims fall to lowest level since '08

WASHINGTON - The number of Americans seeking unemployment aid plummeted last week to seasonally adjusted 339,000, the lowest level in more than four years. The sharp drop offered a hopeful sign that the job market could pick up.

The Labor Department said Thursday that weekly applications fell by 30,000 to the fewest since February 2008. The four-week average, a less volatile measure, dropped by 11,500 to 364,000, a six-month low.

Weekly applications are a proxy for layoffs. They can fluctuate sharply from week to week. If they stay near last week's level, it would likely signal better hiring ahead.

When applications consistently drop below 375,000, it suggests that hiring is strong enough to lower the unemployment rate.

• Geithner: U.S. economy growing despite headwinds
• Jobs report: Unemployment rate drops to 7.8 percent
• On job numbers, BLS vows there's no conspiracy

The positive figures follow a government surprisingly upbeat September employment report. The report said the unemployment rate fell in September to 7.8 percent, from 8.1 percent in August. It was the first time the rate had dropped below 8 percent since January 2009.

The unemployment rate declined because a government survey of households found that 873,000 more people had jobs, the biggest jump in nearly 10 years. An increase in part-time employment accounted for most of the gain.

Employers, meanwhile, added 114,000 jobs in September, according to a separate survey of businesses. And hiring over the summer was stronger than previously estimated. The economy gained an average of 146,000 jobs a month in the July-September quarter. That's more than double the monthly pace in the April-June quarter.

Still, hiring must be stronger to bring relief to the more than 12 million people who are unemployed. Roughly 100,000 new jobs are needed each month to keep up with the working-age population.

Another report Wednesday suggested hiring will likely remain modest. Employers posted slightly fewer open jobs in August compared with July, the Labor Department said. It was the second straight monthly drop and the fewest openings since April.

A key problem is the economy is not growing fast enough to generate much hiring. Growth slowed to a tepid annual rate of 1.3 percent in the April-June quarter, down from 2 percent in the previous quarter. Most economists see growth staying at or below 2 percent in the second half of the year.

[YourMediaOverlord]

Fake numbers right before an election. What a surprise! A real journalistic outfit might have pointed out that the state in the US with the most unemployed people (a state -- coincidentally -- that is Democrat-dominated) held back its numbers, so their media could run such a dishonest headline and claim "We Didn't Know! We're Not Very Smart!" Fortunately CBS is there to carry the Democrats' water, as always.

[gekkobear]

Jobless claims last month? 369,000 from 50 states.

This month? 339,000 from 49 states.

" A Labor Department economist said one large state didn't report additional quarterly figures as expected, accounting for a substantial part of the decrease."

Next month? 30,000 from 2 states.

What? You're not smart enough to pay attention that THEY DROPPED AN ENTIRE STATE AND PRETENDED THE NUMBER WAS STILL MEANINGFUL.. so clearly you'll buy this.

Soon they'll count ZERO states and the number will be ZERO... won't that be impressive? We'll have TONS of people out fo work,and just report Zero since reporters are TOO STUPID TO FIGURE OUT WHAT THE NUMBER THEY'RE REPORTING MEANS!

If all you wanted was to be lied to, I could probably manage that cheaper.

[1988JAck]

Thank you again President Obama for your steady leadership.

[infantryman1968]

Jobless claims fall to lowest level since '08

LOL!

Praise Allah!

[infantryman1968]

Pappione says:
California did NOT report. Their numbers are NOT included CBS News.You need to revise your "article" to mention that, and propose how that would change the numbers.

LOL!

That will be in next week's article: Unemployment unexpectedly rose to.....

[infantryman1968]

Rafterman11 says:

I see the 'cons are desperate to spin any positive news as really bad news. Sorry, no sale. Unemployment at 7.8, plus lower benefits claims is positive news and hopefully will become a trend, despite the GOP's best attempts to stop positive growth.

LOL!

We all know that not filing an unemployment application drives the UA down.

Why would anyone want to work if you and Obama is paying them to stay home?

[rider1956]

We also do not know why the 30,000 did not file. That would uncover an interesting fact about the economy.

[Rafterman11]

I see the 'cons are desperate to spin any positive news as really bad news. Sorry, no sale. Unemployment at 7.8, plus lower benefits claims is positive news and hopefully will become a trend, despite the GOP's best attempts to stop positive growth.

[Pappione]

California did NOT report. Their numbers are NOT included CBS News.
You need to revise your "article" to mention that, and propose how that would change the numbers.

[bjlaskey]

These numbers are so very deceiving. The average person looking for work on the street right now do not see an increase in jobs. I would suggest that this survey is flawed and does not reflect the true problem we are having with jobs and government.