Fewest Americans Filed Jobless Claims Over Past Month Since 2007

Source: Bloomberg

By Lorraine Woellert and Jeanna Smialek Jun 5, 2014 11:30 AM ET

Fewer Americans applied for unemployment benefits over the past month than at any time in seven years, a sign of a healthier labor market that’s helping brighten consumer sentiment.

The four-week average for jobless claims fell to 310,250 in the period ended May 31, the lowest since June 2007, a Labor Department report showed today in Washington. The weekly Bloomberg Consumer Comfort Index increased for the first time in five weeks.

Shorter unemployment lines at state agencies probably set the stage for more hiring as companies, already lean from prior job cutting, gear up for stronger demand. Greater employment opportunities are helping put more Americans at ease about spending, underscored by a jump in May auto sales that shows the economy is emerging from a first-quarter slump.

“The labor market is heading in the right direction,” said Ryan Sweet, a senior economist at Moody’s Analytics Inc. in West Chester, Pennsylvania. Moody’s is the top forecaster of jobless claims over the last two years, according to data compiled by Bloomberg. “The unemployment rate has come down pretty quickly over the last several months and that may be lifting consumer spirits.”

Read more: http://www.bloomberg.com/news/2014-06-05/fewest-americans-filed-jobless-claims-over-past-month-since-2007.html