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The total number of applicants filing for unemployment dropped significantly last week, demonstrating an improved job market.
According to The Wall Street Journal, the number of those applying for initial unemployment claims was close to pre-recession levels for the week of May 24. The applicant number dropped to about 300,000, which is 27,000 less than what it was before, The U.S. Labor Department announced.
The four-week moving average for new applicant claims also dropped last week. The four-week moving average, which measures weekly volatility, fell 11,250 last week dropping it down to 311,500. This number makes it the lowest average since August 2007, Reuters noted.
Economists have noted that a claims average of fewer than 400,000 is a sign that the job market is improving. The amount of people receiving continual aid dropped 17,000 the week of May 17, once again showing the job market improvement. There has also been a 43,000 decrease in the number of people receiving continual unemployment from April to May.
The statistics point to a continual improvement which leads economists to believe that the U.S. national unemployment rate in May will decrease from its 6.3 percent rate in April.