Initial Jobless Claims Fall 18,000 in May 31 Week

Initial claims for state unemployment benefits fell 18,000 to 357,000 in the May 31 week, while continuing claims also dropped, down 16,000 to 3,093,000 in the May 24 week, its sixth week above the three million mark, the Labor Department reportedyesteday.

A Labor Department analyst again cited “no special factors” for the May 31 week but said he was surprised at how low the number came in, even with fewer claims because of Memorial Day, a shortfall that was larger than the seasonal factor expected.

The auto workers indirectly affected who are returning now that the American Axle strike is over may be picked up in the next two weeks’ reports, the analyst said. He repeated that most of the volatility of recent weeks seems to have faded even with the latest week’s larger-than-expected drop, and that the next spike in unadjusted claims is due with auto layoffs associated with the July 4 holiday.

Extended benefits being paid by Alaska that began June 1 will begin to appear in the report next week but should have minimal effect, the analyst said. The fact that Puerto Rico and Maryland were estimated for the latest report had no effect, he said.

Analysts had expected initial jobless claims in the latest week to rise to 375,000. The seasonal factors had expected a 3.6% or 11,000 claims drop because of the holiday and instead claims fell 8.3%, or 27,271.

The four-week moving average for initial claims was 368,500, down 2,750 in the May 31 week.

Again, continuing claims for the May 24 week were down 16,000 to 3,093,000. They first topped the three million level in the April 19 week.

The four-week average for continuing claims was up 15,250 to 3,085,750, the highest since the March 6, 2004 week, when it was 3,094,000.

The unemployment rate among the insured labor force is roughly half that reported monthly by the Labor Department because claims are approved for the most part only for job losers, not job leavers and labor force reentrants included in the monthly report.

— Market News International

 

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