Dive Brief:
- The number of people seeking unemployment benefits fell last week, evidence that layoffs remain at unusually low levels and the job market is moving closer to full health, according to an AP article at USAToday.com.
- Weekly applications for jobless aid dropped 12,000 to a seasonally adjusted 267,000, the Labor Department said Thursday, near the 15-year lows reached two months ago. The four-week average, a less volatile measure, declined 2,000 to 276,750.
- The number of people receiving benefits fell 50,000 to 2.22 million. That figure has fallen 14% in the past year.
Dive Insight:
According to the AP, those figures suggest that Americans are enjoying solid job security. Applications, a proxy for layoffs, have remained below 300,000, a historically low level, for 15 weeks. The trend indicates that employers are confident enough in future consumer demand to retain their staffs.
Other data show that the economy is picking up after faltering early in the year. Americans stepped up their spending at retail stores in May, a sign that job growth and cheaper gas prices are finally encouraging more consumers to spend freely, the AP reports. And consumers ramped up their car purchases in May to the fastest sales pace since July 2005.
If that trend continues, HR can expect the war for talent to get even more competitive, as so-called "passive" employees (not necessarily looking for a new job) may begin to feel more confident about looking to take their skills to a more active job marketplace.
