Monthly average of jobless benefits claims hits 14-year low

The number of workers applying for jobless benefits in the past month hit a more than 14-year low last week, a sign that employers are laying off fewer people amid the faster economic recovery.

The four-week average, which is less volatile and a better indicator of the labor market’s health, fell 250 to 281,000, the lowest level since May 2000, the Labor Department said Thursday.

{mosads}Meanwhile, first-time weekly claims for unemployment insurance increased 3,000 to a seasonally adjusted 287,000.

Hiring has picked up in the past six months, bringing the monthly average of jobs growth to more than 225,000 while the unemployment rate has fallen to 5.9 percent, the lowest level in six years. 

The economy added 248,000 jobs in September. The next report is due out Nov. 7, which is after Tuesday’s midterm elections.

A separate report on Thursday showed that the economy expanded at a 3.5 percent pace in the July-September quarter on stronger federal government spending, while exports outpaced imports, lowering the trade deficit.

On Wednesday, the Federal Reserve acknowledged the labor market’s recent improvement and said that the slack, such as stagnant wages and too many part-timers who want full-time work, is diminishing. 

Still, many economists forecast that the labor market won’t return to full health until 2016.