Fewer Americans apply for jobless benefits last week

WASHINGTON (AP) — Fewer people applied for unemployment benefits last week, adding to evidence that hiring will pick up this year.

The Labor Department said today that the number of people seeking benefits fell by 37,000 to a seasonally adjusted 404,000 for the week ended Jan. 15. That's not much higher than the 391,000 level reached last month, the lowest in more than two years.

The decline suggested that an unexpected rise in applications a week earlier was the result of seasonal factors. Applications often rise in early January after retailers lay off temporary holiday workers.

Fewer than 425,000 people applying for benefits is considered a signal of modest job growth. Economists say applications must fall consistently to 375,000 or fewer to substantially reduce the unemployment rate.