WASHINGTON – Fewer Americans applied for unemployment benefits last week, but initial claims are still running above levels normally associated with strong hiring trends. The Labor Department on Thursday said 409,000 people filed new applications for jobless benefits in the week ended May 14, down from an upwardly revised 438,000 in the prior week. Economists surveyed by MarketWatch had expected claims to decline to a seasonally adjusted 424,000. The number of new requests for unemployment compensation has bounced around over the past few months, ranging from as low as 375,000 in mid-February to as high as 478,000 in late April. The volatility in new claims has made it harder for economists to figure out the direction of the U.S. labor market, though other data, such as the monthly employment report, have shown that businesses are hiring at the fastest pace in five years. Government officials said several one-time factors that often crop up in the spring, such as the Easter holiday and spring break for schools, have distorted the data. As a result, most economists have been expecting the runup in claims to subside. Still, new applications have topped the 400,000 mark for six straight weeks after falling to a three-year low three months ago.

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