US unemployment aid applications fall to 291,000

WASHINGTON (AP) — The number of people applying for U.S. unemployment benefits declined slightly last week, suggesting that job gains should remain solid.

Weekly applications for jobless aid fell 2,000 to a seasonally adjusted 291,000, the Labor Department said today. The four-week average, a less volatile measure, rose 1,750 to 287,500.

Employers are laying off fewer workers and have stepped up hiring this year. The weekly applications are a proxy for layoffs, and have fallen 16 percent in the past 12 months. They are close to the lowest levels since 2000, a sign companies are more confident in the economy and willing to hold onto their staffs.

The number of people receiving aid has also fallen steadily, and now stands at 2.33 million, the lowest since December 2000.

Yet there are still 9 million people unemployed. Almost one-third have been out of work for six months or longer and are no longer eligible for unemployment benefits. And many others out of work are recent college graduates or people who have recently started looking for jobs but weren't laid off. Only those who have been recently laid off are eligible for aid.