NJ Unemployment Claims At Three Year Low

The number of people seeking unemployment benefits dipped slightly last week, though not by enough to suggest that hiring is picking up.

The Labor Department says weekly applications for unemployment benefits declined 2,000 to a seasonally adjusted 402,000. That’s the fourth drop in six weeks. In New Jersey, there are signs that the labor market, unlike the rest of the nation, has stabilized.

Initial claims fell 14.5 percent reversing last week’s jump and individuals receiving regular weekly benefits, fell (-2.6%) for the seventh consecutive time in the week ended October 8th.

Economic analyst Patrick O’Keefe with J.H. Cohn in Roseland says benefit applications remain at near pre-recession levels and the number of people collecting regular benefits is the lowest its been in three years, but it would be a leap to say that the state is experiencing job growth. “But at least with respect to the number of people being laid off, what we’re now seeing is a pattern very consistent with an economy that is stable to moderately expanding.”

With filings adhering to the long-standing seasonal pattern, new claims should remain flat through early November, after which applications usually rise due to seasonal layoffs.

O’Keefe says the sharp decline in the number of people exhausting their benefits is an indication that long term unemployment may be declining.

“It gives us some positive outlook for the state’s economy going forward.”