By Ian McKendry and Kevin Kastner

WASHINGTON (MNI) – Initial claims for U.S. state unemployment
benefits fell by 11,000 to 457,000 in the July 24 week after seasonal
adjustment, according to data released by the U.S. Labor Department
Thursday.

Economists surveyed by Market News International had expected
initial claims to fall to 460,000 in the current week from the
originally reported 464,000 in the July 17 week. The expectations ranged
from 455,000 to 500,000.

The number of initial claims for the July 17 week were revised up
to 468,000.

The Labor analyst said that seasonal adjustment factors had
expected a decline of 16.1% for unadjusted claims, which would have been
about 81,000. Instead, unadjusted claims fell 18.2%, or 91,366, to
411,107. This is well below the 511,628 level in the comparable week a
year earlier.

The analyst called this week’s report “straight-forward,” with no
states estimated.

The initial claims seasonally adjusted 4-week average fell 4,500 to
452,500 in the July 24 week, the lowest level since the May 8 week, when
the average stood at 450,500.

In the July 17 week, continuing claims rose by 81,000 to 4.565
million. The unadjusted level fell by 12,920 to 4,564,922.

The four-week moving average for continuing claims fell 18,000 to
4,548,250 in the July 17 week, the lowest level since the December 27,
2008 week. However, as the large 203,000 dip in continuing claims in the
June 26 week rolls off, the 4-week average is likely to rise in next
week’s data.

The seasonally adjusted insured unemployment rate rebounded to 3.6%
in the July 17 week after falling to 3.5% in the previous week. Still,
the rate was well below the 4.6% rate in the comparable week a year ago.

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 fell by 230,304 in the July 10
week, bringing that category to 3,253,636. Extended benefits claims fell
by 38,552 to 406,842 not seasonally adjusted.

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

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