–Analyst Said 7 States Estimate, 3 From the State Itself
–Data Received From States Since Report Compiled Were Close To Estimate

By Kevin Kastner and Ian McKendry

WASHINGTON (MNI) – Initial claims for U.S. state unemployment
benefits rose by 15,000 to 381,000 in the December 24 week, slightly
above estimates, the Labor Department reported Thursday.

Economists surveyed by Market News International had expected
initial claims to come in at 375,000, up 11,000 from the 364,000 level
initially reported in last week’s data. That week’s claims were revised
up slightly to 366,000.

A Labor Department analyst said that claims were estimated for 7
states this week, not uncommon prior to a Monday Federal holiday. He
added that the same is likely to occur in the claims for the December 31
week released on January 5.

Of those 7 states, 3 of the states–California, Colorado, and
Virginia–submitted their own estimates. Data for the remaining 4
states–Arizona, DC, Hawaii, and Oklahoma–were estimated by the Labor
Department.

The analyst said that hard data received this week by all of those
states have been close to estimates, suggesting that a revision based on
these estimates would be minor.

Seasonal factors had expected a rise of 11.8%, or about 50,000, in
unadjusted claims in the week. The actual unadjusted rise in the
December 24 week was 16.4%, or 69,261 to 490,364. Unadjusted claims were
at a level of 525,710 in the comparable week a year ago.

The initial claims seasonally adjusted 4-week moving average was
375,000 in the December 24 week, a drop of 5,750 from the previous week
and the lowest level since the June 7, 2008 week.

The state data released for the December 17 week indicated
unadjusted initial claims increased in 23 states and declined in 30
states. The District of Columbia, Puerto Rico, and Virgin Islands are
included in this data.

Continuing claims rose by 34,000 to 3.601 million after seasonal
adjustment in the December 17 employment survey week, but was down from
the 3.706 million level in the November 12 employment survey week.

Unadjusted continuing claims fell by 30,448 to 3,597,548 in the
December 17 week and were down sharply from the 4,116,684 level in the
comparable week a year earlier.

The seasonally adjusted insured unemployment rate rose to 2.9% in
the December 17 week from 2.8% in the previous week. The current rate
was still 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 fell by 15,022 in the December
10 week, bringing that category to 2,926,135. Extended benefits claims
rose by 7,201 to 571,848 not seasonally adjusted in the same week.

The Labor Department reported that a total of 7,231,514 persons
claimed unemployment benefits in the December 10 week, a rise of 79,385
from the previous week, but still well below the 8,846,629 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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