–Only Alaska Estimated, Nothing In State Data, NSA Claims Fall
–Initial Claims Lowest Since May 31 2008, 4-wk Avg Low Since Jul 12 ’08
–Continuing Claims Fall 174,000 To 3.583 Mln In Holiday Week; 2-Yr Low

By Brai Odion-Esene and Ian McKendry

WASHINGTON (MNI) – Initial claims for U.S. state unemployment
benefits dropped unexpectedly by 19,000 to 366,000 in the December 10
week, the lowest level since the week of May 31, 2008, the Labor
Department reported Thursday.

Economists surveyed by Market News International had expected
initial claims to come in at 390,000, up 9,000 from the 381,000 level
initially reported in last week’s data. That week’s claims were revised
up to 385,000.

A Labor Department analyst said only Alaska was estimated and there
was nothing usual in the state-level data.

The analyst said seasonal factors had expected a decline of 13.8%,
or 73,000, in unadjusted claims in the week, as claims traditionally
drop-off following the massive gains usually seen in the week after the
Thanksgiving holiday.

The week following Thanksgiving is usually the largest single-week
increase of the year, as filings pick up after the holiday week and the
week following is usually the start of seasonal layoffs. The peak for
the level of unadjusted claims is usually the second week in January as
seasonal holiday workers are dismissed after the holidays.

The actual unadjusted decline in the December 10 week was 18.1%, or
95,506 to 433,287, a bigger drop than seasonals had expected. Unadjusted
claims were at a level of 491,776 in the comparable week a year ago.

The initial claims seasonally adjusted 4-week moving average was
387,750 in the December 10 week, a decrease of 6,500 from the previous
week and the lowest level since the July 12, 2008 week.

The state data released for the December 3 week indicated
unadjusted initial claims increased in 47 states and declined in 6
states. The District of Columbia, Puerto Rico, and Virgin Islands are
included in this data.

Continuing claims jumped by 4,000 to 3.603 million after seasonal
adjustment in the December 3 post-holiday week. Unadjusted continuing
claims plunged by 179,155 to 3,516,999 in the December 3 week, but was
still down from 4,062,531 in the comparable week a year earlier.

The seasonally adjusted insured unemployment rate was unchanged at
2.9% in the December 3 week from the previous week. The current rate was
well below the 3.3% 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 the level of unadjusted Emergency
Unemployment Compensation benefits claims soared by 254,642 in the
November 26 holiday week, bringing that category to 3,048,926. Extended
benefits claims rose by 77,537 to 593,097 not seasonally adjusted in the
same week.

The Labor Department reported that a total of 7,449,507 persons
claimed unemployment benefits in the November 26 holiday week, an
increase of 874,670 from the previous week and still well below the
9,192,067 persons in the comparable week a year ago. These data are not
seasonally adjusted, and include regular state claims, federal employee
claims, new veterans claims, the EUC and extended benefits programs,
state additional benefits, and STC/Workshare claims.

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

[TOPICS: MAUDS$,MT$$$$,M$U$$$,MAUDR$]