US unemployment benefit applications plunge to 15-year low

WASHINGTON (AP) — The number of people seeking unemployment aid plunged last week to the lowest level in almost 15 years, a sign hiring will likely remain healthy.

Weekly applications dropped 43,000 to a seasonally adjusted 265,000, the Labor Department said today. That is the lowest level since April 2000. It is also the biggest decline in two years. The four-week average, a less volatile measure, fell 8,250 to 298,500.

The latest drop may have been exaggerated by the federal holiday, which likely slowed the processing of some claims.

Still, applications are a proxy for layoffs, so the sharp decline means companies are probably cutting fewer jobs. The four-week average has fallen 11 percent in the past year. At the same time, hiring has picked up. Employers added almost 3 million jobs last year, the most since 1999. Strong economic growth has encouraged companies to add more workers.