By Kevin Kastner

WASHINGTON (MNI) – Initial claims for U.S. state unemployment
benefits fell 10,000 to 453,000 in the May 29 week after seasonal
adjustment, according to data released by the U.S. Labor Department
Thursday morning.

A Labor analyst said that there were six states estimated due to
the Monday holiday. Three of them, the Virgin Islands, Hawaii and Idaho,
were estimated by the Labor Department. The other three, Wyoming,
Virginia, and California, were estimated by the state itself.

The report 453,000 level was only slightly above the Market News
International survey median of 450,000 and followed an upward revision
to claims in the previous week to a level of 463,000.

Seasonal adjustment factors expected an increase in unadjusted
claims of about 3.0%, which would have been a rise in claims by about
12,000. Unadjusted initial claims actually rose 0.8%, or 3,427, to a
level of 410,302. This is still well below the 500,380 level in the
comparable week a year earlier.

The initial claims seasonally adjusted 4-week average rose 1,750 to
459,000 in the May 29 week, considerably less than the 619,250 level
seen in the comparable week the prior year, but the third straight
increase.

In the May 22 survey week, continuing claims rose by 31,000 to
4.666 million, but were down 77,692 unadjusted. Continuing claims were
again at their highest level since the April 3 week, when they stood at
4.686 million.

The seasonally adjusted insured unemployment rate remained at 3.6%
in the May 22 week, which is well below the 4.9% rate in the comparable
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.

The Labor Department said that there were 21,172 more unadjusted
Emergency Unemployment Compensation benefits claims in the May 15 week,
bringing that category to 5,081,015. Extended benefits claims rose by
35,358 to 314,311 not seasonally adjusted.

** Market News International Washington Bureau: 202-371-2121 **

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