Article updated: 10/12/2012 7:23 AM

Fewer U.S. layoffs no longer suggest strong hiring

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United States Air Force Master Sgt. Matt Ditarando, center, talks with Wal-Mart store manager Craig Edwards at the Hiring Our Heroes job fair at Raymond James Stadium in Tampa The number of Americans seeking unemployment aid plummeted last week to seasonally adjusted 339,000, the lowest level in more than four years.

Associated Press

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Declining applications for unemployment benefits have typically pointed to stronger hiring. Not so much anymore. Since the U.S. recession officially ended in June 2009, fewer layoffs have meant fewer people seeking unemployment aid. On Thursday, for example, the government said first-time applications for benefits hit a 4½-year low. Yet job growth remains sluggish. That was evident last week in the government's jobs report for September.