Jobless-aid seekers drop below 400K

Associated Press

WASHINGTON

The number of people seeking unemployment benefits dropped last week to the lowest level since early April, a sign the job market may be healing after a recent slump.

The Labor Department said Thursday that weekly applications fell 24,000 to a seasonally adjusted 398,000. That’s the first time applications have fallen below 400,000 in 16 weeks.

The four-week average, a less-volatile measure, dropped to 413,750, the lowest since the week of April 23.

Stocks rose after the report was released. But they closed lower for the day after uncertainty in Washington over the debt crisis led to a late-afternoon sell-off.

Economists cautioned that the lower level of unemployment-benefit applications reflects only one week of data, and that doesn’t necessarily signal a trend.

Separately, the National Association of Realtors said more people signed contracts to buy homes in June for the second-straight month. But the increase was not enough to signal a rebound in the weak housing market.