Christopher Rugaber Posts

Maybe a higher minimum wage isn't so bad for job growth after all. The 13 U.S. states that raised their minimum wages at the beginning of this year are adding jobs at a faster pace than those that did not, providing some counter-intuitive fuel to the debate over what impact a higher minimum has on hiring trends.

The number of Americans seeking unemployment benefits fell 5,000 last week to a seasonally adjusted 305,000, the second-lowest level in six years. Steady declines in applications show that very few companies are laying off workers.

U.S. employers added 165,000 jobs in April, and hiring was much stronger in the previous two months than the government first estimated. The job increases helped reduce the unemployment rate from 7.6 percent to a four-year low of 7.5 percent.

A burst of hiring in February added 236,000 U.S. jobs and reduced the unemployment rate to 7.7 percent from 7.9 percent in January. The strong job growth showed that employers are confident about the economy despite higher taxes and government spending cuts.