U.S. Unemployment Applications Drop to 14-year Low

appication for unemployment

The unemployment trend in the United States has been a never-ending story since the start of the recession in 2007, but new statistics show some progression.  

Last week, the number of unemployment application submissions decreased to its lowest level.

The Labor Department determined that the requests for unemployment aid fell by 23,000 to 264,000. This drastic drop is reportedly the smallest number America has witnessed since April 2000.

The four-week average of submitted unemployment applications depleted from 287,750 one week to 283,500 the following week—the lowest seen since June 2000.

Additionally, the nation’s unemployment rate (5.9 percent) fell to a six-year low.

Here is a general break down of September’s unemployment decline in accordance to data gathered by the Bureau of Labor Statistics

  • White workers showed decent change (5.1 percent)
  • Hispanics showed decent change (6.9 percent)
  • Black workers experienced little to no change over a month (11.0 percent)
  • Asians experience little to no change (4.3 percent)
  • Adult men showed decent change (5.3 percent)
  • Adult women experienced little to no change (5.5 percent)
  • Young Adults and teenage workers experienced little to no change  (20.0 percent)

Since last year, job availability increased by 2 million as employers added 248,000 within the last month, which may explain why job claims are shrinking.

“Whether claims can be sustained at such a low level - an all-time low, as a share of payroll employment - is debatable... but this is a clear signal of real strength in the labor market," said Ian Shepherdson, chief economist at Pantheon Macroeconomics. 

There are still minor issues with employers filling positions within their companies. 

While some applicants may not apply to certain jobs based off of salary offerings, employers are apparently not hiring as much because they can’t find any qualified applicants.

Economist Guy Berger at RBS Securities Inc. implied how this drives employers to not get rid of the help they already have, preventing further growing numbers in unemployment.

“You hear stories that businesses are having trouble finding workers. If you’re having trouble finding workers, you’re certainly not going to lay off the ones you already have,” Berger said.

As far as retail profits are concerned, sales dropped by 0.3 percent. Economists particularly associate this current figure with certain factors such as plummeting prices on products and sluggish economic global growths.

However, consumer spending does seem promising, even while most shoppers are becoming more spending-conscious. Thus far, 2014 successfully saw a rise in spending numbers by 2.3 percent. Economists expect numbers to increase by 2.7 percent in 2015.

Financial analysts have already predicted that the number of job claims will increase once again anywhere between 280,000 and 300,000.  

Some economists believe that last week’s numbers aren’t major improvements.

While the unemployment length for the average jobless person now reaches pass six months, they’ve concluded that the percentage of workforce participation in America still sits very low in comparison to the country’s job market history.