First-time jobless claims up by 16,000

The data suggest that the labor market is healing as layoffs slow and hiring picks up. Economists argue that the labor market is healthier when applications fall below 375,000. 

{mosads}The pace of hiring has picked up recently, averaging about 200,000 jobs a month since late last year.

In February, employers added 236,000 jobs and the unemployment rate fell to 7.7 percent, the lowest level in four years.

Jobs reports for March are due out next week. 

The housing market’s steady recovery could lead to more jobs among other sectors of the economy that are showing gradual improvement.

Still, economists are concerned that the momentum in the job market could stall out over the next few months because of the implementation of $85 billion in across-the-board spending cuts, which went into effect on March 1. 

But, if the economy can bear the burden, growth and jobs could pick up again later this year, they argue.