By Brai Odion-Esene and Ian McKendry

WASHINGTON (MNI) – Initial claims for U.S. state unemployment
benefits declined by a larger than expected 16,000 to 453,000 in the
Sept. 25 week after seasonal adjustment, with seasonal factors actually
expecting a fairly flat reading, the U.S. Labor Department reported
Thursday.

Economists surveyed by Market News International had expected
initial claims to fall to 460,000 in the current week, from 465,000
originally reported the previous week, now revised upward by 4,000. The
expectations ranged from 452,000 to 475,000.

The U.S. Virgin Islands was the only state estimated, the Labor
Department analyst said.

He added that for the latest week seasonal factors expected
unadjusted claims to increase by less than 1,000 or 0.2%. Instead, they
fell 3.2%, or 12,176 claims, to 370,147.

Since the actual number of claims came in under expectations, the
analyst continued, the seasonal adjusted level declined this week.
Other than that, there was “nothing remarkable” in the state level data,
he said.

The initial claims seasonally adjusted 4-week average fell 6,250 to
458,000, again the lowest since the end of July and its fifth
consecutive decline.

In the Sept. 18 survey week, continuing claims fell by 83,000 to
4,457,000, the lowest since the June 26 week (4.434 million). Unadjusted
continuing claims fell 169,875 to 3,766,450, well under the 5,072,855 of
a year earlier.

In an employment survey week comparison, continuing claims are down
22,000 vs. the August 14 week level of 4,479,000.

The seasonally adjusted insured unemployment rate edged back down a
tenth to 3.5% in the Sept. 18 week, down 1.0 points from 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 dropped by 256,536 in the
September 11 week, bringing that category to 3,965,778. Extended
benefits claims also fell, down 36,686 to 913,113 not seasonally
adjusted.

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

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