Jobless claims rise 1,000 to 234,000 In May 20 week

Initial claims for U.S. state unemployment benefits rose by 1,000 to 234,000 in the May 20 week, below the 235,000 level analysts expected, but still near the decades-low levels seen in recent weeks, data released by the Labor Department Thursday showed.

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Job seekers wait in line during the TechFair LA job fair in Los Angeles, California, U.S., on Thursday, Jan. 26, 2017. Filings for U.S. unemployment benefits rose more than forecast last week amid holiday-related volatility, while remaining low by historical standards. Photographer: Patrick T. Fallon/Bloomberg

The four-week moving average for initial claims, a better measure of the underlying trend of the data, fell by 5,750 to 235,250 in the May 20 week. This was the lowest level since the April 14, 1973 week, when it was 232,750, another indication of the tightness in Labor markets.

If the number of headline claims does not change next week and there are no revisions to data from the past four weeks, the four-week average will fall by a further 1,000 as the 238,000 level in the April 29 week rolls out of the calculation. This would keep the historical comparison with the April 14, 1973 week the same.

There were no special factors reported by the Labor Department, but data from Louisiana and North Dakota were estimated for the week.

Seasonal adjustment factors had expected an increase of 0.8%, or 1,630, in unadjusted claims in the week. Instead, unadjusted claims rose by 2,841 to 209,814, but was still well below the 240,798 level in the comparable week a year ago.

The level of continuing claims rose by 24,000 to 1.923 million in the May 13 employment survey week after declines in the previous three weeks and six of the last seven weeks. Continuing claims were at a level of 1.987 million in the April 15 employment survey week, so the 64,000 decline from the April survey period to May survey period is a positive for May payrolls.

The four-week moving average for continuing claims fell by 16,000 to 1.930 million in the May 13 week, the lowest point since a 1.921 million level in the January 19, 1974 week.

The seasonally adjusted insured unemployment rate held steady at 1.4% in the May 13 week for the sixth straight week. The current rate is down from 1.6% in the same week a year earlier.

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.

Market News International is a real-time global news service for fixed-income and foreign exchange market professionals. See www.marketnews.com.
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