Jobless claims drop to three-year low

The last time applications were this low, the unemployment rate was holding at 5.4 percent. 

Economists say when claims for benefits drop below 375,000 it indicates a healthy job market and the prospect of more jobs and a lower unemployment rate.

Job creation sputtered most of this year as applications fell to 375,000 in February and stayed below 400,000 for two months, before hitting an eight-month high of 478,000 in April. 

Still, businesses are remaining cautious and, right now, there just aren’t enough jobs for the 14 million unemployed, as measured by the government. 

Job openings have risen by about 35 percent since the recession officially ended in June 2009. But they’re still about 25 percent below pre-recession levels.

Business leaders said on Wednesday that they aren’t planning to hire in the next six months — mostly because of the uncertainty around the U.S. and European debt situation, according to a Business Roundtable survey. 

The improvement also could provide a stronger argument for House Republicans who are suggesting that unemployment benefits be cut next year from a maximum of 99 weeks to 59 weeks by the summer — that means cutting federally funded programs from 73 weeks to 33 weeks during the next six months. 

On the other hand, Democrats, who want to keep the 99 weeks in place for workers who need them, can show that the number of people who have run through their 26 weeks of state benefits and are getting federal emergency and extended payments increased by about 332,200 to 3.64 million in the week ending Nov. 26, according to Thursday’s data.

Congressional Democrats say it is too early to pull back on federal aid, especially with such a high rate of unemployment. 

Extended benefits were available in Alabama, California, Colorado, Connecticut, Delaware, the District of Columbia, Florida, Georgia, Idaho, Illinois, Indiana, Kansas, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Nevada, New Jersey, New Mexico, New York, North Carolina, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Washington, West Virginia and Wisconsin during the week ending Nov. 26.