The number of Americans applying for unemployment benefits declined slightly last week, but applications are still above levels consistent with a healthy economy.
Weekly applications dropped 6,000 to a seasonally adjusted 403,000, the U.S. Labor Department said Thursday. The previous week's figure was revised up to 409,000.
But applications are ticking down. The four-week average fell for a fourth week, to 403,000. A month ago it was 422,250.
Applications need to fall consistently below 375,000 to signal sustainable job growth. They haven't been below that level since February.
Economists have been closely watching the unemployment benefits report since fears of another recession intensified in August. Layoffs and applications tend to rise at the beginning of recessions. The slow decline in applications suggests hiring remains sluggish but layoffs aren't worsening.
Employers have added an average of only 72,000 jobs a month the past five months. That's far below the 100,000 a month needed to keep up with population growth. And it's down from an average 180,000 the first four months this year.
In September, the economy generated 103,000 net jobs. That was enough to calm recession fears, but it wasn't enough to lower the unemployment rate, which stayed at 9.1%.
