–Survey Week Claims Up 5,000 From April 16 Survey Week

By Kevin Kastner and Ian McKendry

WASHINGTON (MNI) – Initial claims for U.S. state unemployment
benefits fell 29,000 to 409,000 after seasonal adjustment in the May 14
week, with no sign of auto or storm related claims in the current week’s
state data, the Labor Department reported Thursday.

Economists surveyed by Market News International had expected
initial claims to come in at 425,000, down 9,000 from the initially
reported level of 434,000. The previous week’s claims were revised
up to 438,000.

A Labor Department analyst said there were mention in the current
week’s state data of storm-related claims or layoffs in the auto
industry that can be attributed to shortages of auto parts from Japan.

There were, however, mentions of these factors in the state data
for the May 7 week, with Alabama reporting a large increase that it
attributed to a “reflected impact of storms and tornados of the previous
week.”

In the May 7 week, Michigan reported a rise in claims due to
layoffs in the automobile and construction industries, but did not say
that the layoffs were directly due to supply shortages.

In the May 14 week, only claims from the Virgin Islands were
estimated.

Seasonal factors expected a decline of 3.9%, or about 15,000
unadjusted claims in the current week. Instead, unadjusted claims fell
39,865 to 357,872 in the current week. Unadjusted claims were at a level
of 414,572 in the comparable week a year earlier.

The initial claims seasonally adjusted 4-week moving average rose
1,250 to 439,000 in the May 14 week, the sixth consecutive increase.

The state data released for the May 7 week indicated unadjusted
claims increase in 24 states and declines in 29 states. The District of
Columbia, Puerto Rico, and Virgin Islands are included in this data.

In the May 7 week, continuing claims fell 81,000 to 3,711,000
after adjustment.

The seasonally adjusted insured unemployment rate held steady at
3.0%, but was down from 3.6% in 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 rose by 53,398 in the April
30 week, bringing that category to 3,468,979. Extended benefits claims
fell by 48,967 to 640,042, not seasonally adjusted in the same week.

The Labor Department reported that a total of 7,936,548 persons
claimed unemployment benefits in the April 30 week, a decline of 47,124
from the previous week and well below the 10,056,912 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 **

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