US unemployment benefit apps fall to 343K

WASHINGTON (AP) — The number of Americans applying for unemployment benefits fell 5,000 to a seasonally adjusted 343,000 last week, a sign that employers are adding jobs at modest pace.

The less volatile four-week average dipped 750 to 345,500, the Labor Department said today.

Weekly applications for unemployment benefits are a proxy for layoffs. The four-week average has fallen 9 percent in the past year.

Job growth has been stable. A separate report showed that companies stepped up hiring in June, a hopeful sign ahead of Friday's employment report for last month.

Payroll provider ADP said businesses added 188,000 jobs in June, up from 134,000 in May and the most since February. Construction firms added 21,000 jobs, a sign the housing recovery is boosting hiring. Small businesses — those with less than 50 employees — added 84,000 jobs.

ADP's survey has frequently diverged from the government's figures. Still, Jennifer Lee, an economist at BMO Capital Markets, said the report and the low number of unemployment benefits were encouraging.