Applications For Unemployment Benefits Fell 390,000

WASHINGTON (AP) - how many people applied for unemployment benefits last week fell to its lowest level since April, a sign that employers may have increased intake.

Department of Labor said that applications fell a seasonally adjusted 390,000 weekly Thursday. It 'was the third fall in four weeks. An average of four weeks, less volatile measure, fell to 400,000, the lowest point since April.

The downward trend in applications suggests that companies dismiss fewer workers. However, applications should always be below 375 000 to report strong earnings from employment. They were not at that level since February.

In addition, the Commerce Department said the U.S. trade deficit fell in September to its lowest level this year. Foreign sales of American-made automobiles, aircraft and heavy machinery pushed exports to record levels. The deficit shrank 4 percent to $ 43.1 million, the third consecutive decline.

Stock index futures held gains after reports were released.

Employment prospects are mixed in recent months. The economy added only 80,000 jobs in October, the lowest number in four months.

But the government also said last week that employers added more jobs in August and September than it had originally reported, and the unemployment rate fell by 9 percent.

In a separate report this week showed that employers announced the creation of jobs in September than at any time during the last three years. Is a positive sign for future employment, as most companies usually take one to three months to fill vacancies.

A modest economic growth has helped to calm fears of recession. The economy grew at an annual rate of 2.5 percent in July-September quarter, the government said. Although it was the best quarterly growth in a year, it would take nearly twice that - ever - to achieve a significant reduction in unemployment.

Unemployment has been stuck around 9 percent for more than two years, and the Federal Reserve said last week that it is not expected to decline significantly by the end of next year.

Another concern is that growth came after consumers spent more but earning less, a trend that economists fear can not be sustained. Many fear that the debt crisis in Europe could intensify and pull the continent into a recession, slowdown in U.S. exports and reduce growth.

Fired Employers hiring this spring, after the rise in gas prices cut into consumer spending and in Japan on March 11 earthquake supply chains interrupted. This slows down the U.S. auto production.

Car output rebounded in recent months, gas prices have declined since its peak in early May, however, oil prices rose 22 percent since early October and is almost $ 100 a barrel. Some analysts are concerned that gas prices could soon rise and reach $ 4 a gallon by early next year.