WASHINGTON (MNI) - Initial claims for U.S. state unemployment benefits fell by 1,000 to a level of 261,000 in the August 20 week, below expectations for a 265,000 level following a unrevised 262,000 level in the previous week, data released by the Labor Department Thursday showed.
As the July 23 week's 266,000 level rolled out of the calculation, the four-week moving average for initial claims fell by 1,250 to 264,000 following three straight increases. If the headline number of claims remains steady next week, the average should post another decline.
The four-week moving average remains below its year-ago level of 274,250 and the 277,000 level where it started the year, an indication of marked improvement.
The Labor Department said there were no special factors in this week's claims data and that no state data had to be estimated.
Seasonal adjustment factors had expected a decrease of 0.7% or 1,574 unadjusted claims in the current week. Instead, unadjusted claims fell by 2,929 to 216,594. The current week's unadjusted level was still below the 226,649 level in the comparable week a year ago.
The advance states data, which are unadjusted, indicated declines in 32 of the states and territories, with the largest declines seen in California, Oregon, Maryland, and Virginia. Last week, 40 of the states posted declines, so this week's data were a little more balanced.
The level of continuing claims fell by 30,000 to 2.145 million in the August 13 employment survey week, little changed from the 2.144 million level in the July 16 employment survey week, suggesting no impact on August payrolls. The modest difference between the current week and the level in the July 16 week also kept the 4-week moving average rough unchanged.
Before seasonal adjustment, continuing claims for the August 13 week fell by 22,920 to 2.061 million. This level was well below the 2.164 million level seen in the comparable week a year ago.
The seasonally adjusted insured unemployment rate held steady at 1.6% in the August 13 week, where it has been almost every week in 2016. The rate was 1.7% a year ago.
The unemployment rate among the insured labor force is well below 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.
