The number of Americans filing new claims for unemployment benefits rose last week, but remained close to a seven-year low that suggests hiring should remain steady, the Associated Press reported.
Applications rose 28,000 to 326,000 for the week ended May 17, the Labor Department said on Thursday. The increase comes after applications fell to their lowest level since May 2007 two weeks ago.
Economists say the cumulative reduction in new claims could point to stronger hiring, although one metric in Thursday's report cast a shadow over the upcoming monthly employment report for May, Reuters reported.
The four-week average, a less volatile measure, dipped 1,000 to 322,500. Last month, the average reached a seven-year-low of 312,000.
Since applications are a proxy for layoffs, the low levels suggest that few jobs are being axed by companies.
The number of people receiving benefits fell to 2.65 million, the fewest since Dec. 1, 2007, when the recession began, according to the AP.
"Don't be disappointed," Ian Shepherdson, chief economist at Pantheon Macroeconomics, said in a research note. "The trend is downwards, signaling faster payroll growth."
Although unemployment remains at historically high levels, employers are adding more jobs. Healthier hiring had accompanied the recent decline in firings.
"The economy gained 288,000 jobs in April, the most in 2 ½ years, and the unemployment rate plunged to 6.3 percent from 6.7 percent," the AP reported. "But the rate drop occurred because fewer people looked for work. The government doesn't count people as unemployed unless they are actively searching."
Up from 194,000 last year, an average of 214,000 jobs a month has been added by employers in the first four months of this year.
Economists polled by Reuters had forecast first-time applications for jobless aid ticking up to 310,000 last week.
"The claims report showed the number of people still receiving benefits after an initial week of aid fell 13,000 to 2.65 million in the week ended May 10," Reuters reported.
