Applications for unemployment benefits drop sharply - WKOW 27: Madison, WI Breaking News, Weather and Sports

Applications for unemployment benefits drop sharply

WASHINGTON (WKOW) -- Just a day before the government releases the April jobs report, there's some encouraging news about unemployment.

The number of people filing for unemployment benefits fell last week by the most in more than three months. The Labor Department says weekly unemployment aid applications fell 27,000 to a seasonally adjusted 365,000.

When applications fall below 375,000, it generally suggests hiring will be strong enough to lower the unemployment rate. The four-week average though, went up to 383,500, the highest level since December.

Applications jumped last month after steadily declining since the fall. At the same time, hiring slowed in March. Those figures had sparked concerns that the job market was worsening after strong gains during the winter.

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