Jobless Claims Fall 12,000 To 631,000 in May 16 Week

Initial claims for state unemployment benefits fell by 12,000 in the May 16 week to 631,000, much below analysts’ expectations, according to data released by the Labor Department yesterday.

A Market News International survey had expected the initial claims level to rise to 645,000 this week from the originally reported 637,000 in the May 9 week. The expectations ranged from 620,000 to 675,000.

Jobless claims for the May 9 week were revised up 6,000 to 643,0000, while the May 2 level remained unrevised at 605,0000.

The initial claims seasonally adjusted four-week average declined 3,500 to 628,500.

In the May 9 week, continuing claims marched upwards to yet another record high for the 16th consecutive week, rising 75,000 to 6.662 million and likely to hit seven million before too long. Continuing claims were 3.062 million in the comparable week a year ago.

A Labor Department analyst described the week as “very uneventful.”

According to the analyst, seasonal adjustment factors had expected unadjusted claims to fall 4.2% or 28,000. Instead, the actual decline was 6% or 33,824 to a level of 536,588.

“A number of the states that showed increases from automotive claims last week, showed decreases this week,” the analyst said, and so were primarily responsible for the majority of decreases in the May 16 week.

— Market News International

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