Believe it or not, the number of people looking for unemployment benefits is at the lowest level in more than three years. The government is expected to report that applications for unemployment fell even further during the last week of 2011. According to a survey by FactSet, economists are forecasting that weekly applications dropped by 6,000 to a seasonally adjusted 375,000.
Here is some other interesting information about recent unemployment benefit numbers:
  • Unemployment benefit applications increased in the previous week for the first-time in a month. The four week average has declined for the fourth week in a row to 375,000. This represents the lowest level since the middle of 2008. It’s also 11 percent lower than the same time one year ago.
  • When applications for unemployment benefits drop below 375,000 consistently, this is generally a sign that hiring is strong enough to reduce the unemployment rate. 
  • Even though layoffs at companies have fallen tremendously since the recession officially ended just about two and a half years ago, many employers have still been slow to add any jobs. However, economists predict that since hiring strengthened at the end of last year, it will increase even more this year. 
  • Economists that were surveyed by the Associated Press are projecting the economy will produce an average of 175,000 jobs each month this year. This would be an improvement from the average monthly gains of 13,000 in 2011 and 78,000 in 2010. 
  • This past November, the unemployment rate dropped to 8.6 percent from 9 percent. It’s estimated that decrease occurred because many people who couldn’t find jobs gave up trying to find one and when people stop looking for a job, they are no longer classified as “unemployed.” 
Unemployment benefit information is released each month by the Department of Labor.

Modern Business Associates is an HR company that focuses on payroll and HR outsourcing. We routinely work with clients on hiring trends. As a Professional Payroll and HR outsource organization, our clients rely on us to help them effectively deal with these kinds of topics.