50-year low in jobless claims but not just from few layoffs

WASHINGTON (AP) — The fewest people in nearly 50 years sought unemployment benefits last week, a sign of a strong job market and an unusually low level of layoffs.

Yet the decline in applications for jobless aid isn't due solely to a tight employment picture. Many states have imposed stricter rules on their unemployment insurance programs — from making it harder to qualify to reducing the duration of benefits to cutting payouts.

The combined effect has been to reduce the number of unemployed people who apply for and receive aid, economists say. Nationwide, just 30% of people out of work now receive unemployment insurance, down from about 40% before the Great Recession.

The historically low level of people seeking aid "tells us we have a strong labor market, and that we've made policy changes that mean fewer people can qualify for benefits," said Martha Gimbel, research director at job listings website Indeed.

Weekly applications for unemployment benefits dropped 8,000 to a seasonally adjusted 196,000 last week, the Labor Department said Thursday . That is the lowest level since 1969. The four-week average, a less volatile measure, fell to 207,000, the also lowest point in 50 years.

The decline is all the more remarkable once you take into account population growth. The size of America's workforce has doubled since the late 1960s to 162 million.

Still, dwindling unemployment claims send a signal of strength about the job market and the economy. Applications for jobless aid typically track layoffs. So the continuing decline — applications have tumbled for four straight weeks — shows that most businesses are confident enough about future customer demand to keep their staffs intact.

That confidence is spurring more hiring, too: Job growth rebounded last month...