A Bureau of Labor statistics report announced that first-time applications for unemployment benefits fell to below 400,000 for the first time in three months. At 398,000, the drop has gone under the mark that many analysts feel signals recovery in the job market.
No extenuating circumstances were noted in the labor report as to why the number came in so low, but the number of layoffs did slow by 67% in June. More than 159,000 workers were laid off in over 1,600 separate layoff actions.
What the report also showed is that the number of Americans on extended benefits is up drastically.
Beneficiaries that have used up the standard benefits and are now on emergency benefits is up another 62,400 bringing the total to a staggering 3.76 million Americans.
Analysts believe the unemployment rate will remain unchanged for a few more months citing the still high level of layoffs in the report.