By Denny Gulino and Ian McKendry
WASHINGTON (MNI) – Initial claims for U.S. state unemployment
benefits dropped 44,000 to 434,000 after seasonal adjustment in the
May 7 week, despite an increase in storm-related claims in the
South, the Labor Department reported Thursday.
Economists surveyed by Market News International had expected
initial claims to come in at 430,000 from the initially reported level,
revised to 478,000.
A Labor Department analyst said that for the latest week, seasonal
factors expected a 4.4% increase of about 18,000 claims and instead got
a 5.1% decline of about 21,000. The only special factor, the Labor
Department analyst said, was a “sizable rise” in claims in Alabama
because of “storms and tornadoes.” He said the Alabama spike was “not
really enough to move the national numbers.”
The 47,000 increase in claims in the previous week and the 27,000
rise the week before that, as well as a 31,000 increase in the April 9
week had raised a question of whether there was a general worsening or
just seasonal adjustment vagaries associated with the Easter season.
One state was estimated, Virginia, which had computer problems, the
analyst said.
The initial claims seasonally adjusted 4-week moving average rose
4,500 to 436,750, its sixth consecutive week of gains.
In the April 30 week, continuing claims rose 5,000 to 3,756,000
after adjustment. The four-week moving average for continuing claims
rose 13,250 to 3,718,500.
The seasonally adjusted insured unemployment rate remained at 3.0%.
The unadjusted rate was 2.9%.
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.
The Labor Department said that the level of unadjusted Emergency
Unemployment Compensation benefits claims dropped by 31,961 in the April
23 week to 3,415,581. Extended benefits claims rose 14,838 to 689,009.
Total claims dropped 31,247 to 7,983,762.
** Market News International Washington Bureau: 202-371-2121 **
[TOPICS: MAUDS$,MT$$$$,M$U$$$,MAUDR$]
