Jobless applications drop to nearly a 15-year low

First-time claims for unemployment benefits fell sharply last week to near a 15-year low, a good sign for the job market’s continued recovery. 

Weekly applications plunged 43,000 to a seasonally adjusted 265,000, the lowest level since April 2000, the Labor Department said Thursday.

{mosads}Meanwhile, the less volatile four-week average dropped 8,250 to 298,500.

Although the federal holiday — Martin Luther King Jr. Day, on Monday — may have boosted last week’s improvement because offices were closed and some applications were delayed, the data show that businesses are laying off fewer workers. 

The economy added nearly 3 million jobs last year — the best showing since 1999 — and economists are expecting the labor market and the broader economy to make greater strides this year.

Applications have been holding around 300,000 since September, and that steadiness has been reflected in the addition of more than 200,000 jobs a month.

The first jobs report of the year is due out next week.

The nagging issue in the recovery is the lack of wage growth, which slowed last year. 

Still, some economists have argued that as the labor market tightens businesses will boost salaries to retain workers and hire the best of the talent pool.