Jobless Claims Fall 52,000 To 565,000 in July 4 Week

Initial claims for state unemployment benefits in the shortened July 4 week dropped to levels not seen since the beginning of the year, falling by 52,000 to 565,000, far below analysts’ expectations, according to data released by the U.S. Labor Department Thursday.

Seasonal factors had expected an increase of 12.7% or 71,000. The actual result was an increase of 3.1% or 17,612 initial claims to 577,506. No states were estimated.

The last time initial claims were this low was in the Jan. 10 week, when it came in at 535,000.

A Market News International survey had expected the initial claims level to fall to 608,000 in the week ended July 4 from the originally reported 614,000 in the June 27 week. The expectations ranged from 605,000 to 625,000.

Initial claims for the June 27 week were revised up 3,000 to 617,000. Claims for the June 20 week level was unrevised at 630,000.

The initial claims seasonally adjusted four-week average fell 10,000 to 606,000.

In the June 27 week, continuing claims was a record high, up 159,000 to 6.883 million. Continuing claims were 3.218 million in the comparable week a year ago.

The seasonally adjusted insured unemployment rate rose to 5.1% in the June 27 week. It was 2.4% in the comparable week a year ago.

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 the job leavers and labor force reentrants included in the monthly report.

— Market News International

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