–Labor Department Analyst: No States Estimated
–Analyst: This Week Is Usually The Peak Level For Unadj Claims For Year

By Brai Odion-Esene and Kevin Kastner

WASHINGTON (MNI) – Initial claims for U.S. state unemployment
benefits rose by 24,000 to 399,000 in the January 7 week, far above
estimates, the Labor Department reported Thursday.

Economists surveyed by Market News International had expected
initial claims to come in at 375,000, up 3,000 from the 372,000 level
initially reported in last week’s data. That week’s claims were revised
up slightly to 375,000.

A Labor Department analyst said that no state data was estimated
this week and there were no special factors. He did note that the first
full week of January is typically when the year’s peak level for
unadjusted claims is seen.

Seasonal factors had expected a rise of 11.7%, or about 63,000, in
unadjusted claims in the week. The actual unadjusted rise in the January
7 week was 18.9%, or 102,314 to 642,381. Unadjusted claims were at a
level of 773,499 in the comparable week a year ago.

The initial claims seasonally adjusted 4-week moving average was
381,750 in the January 7 week, an increase of 7,750 from the previous
week.

The state data released for the December 31 week indicated
unadjusted initial claims increased in 26 states and declined in 27
states. The District of Columbia, Puerto Rico, and Virgin Islands are
included in this data.

Continuing claims rose by 19,000 to 3.628 million after seasonal
adjustment in the December 31 week. Unadjusted continuing claims rose
360,884 to 4,139,988 in the December 31 week but are still down from the
4,790,155 level in the comparable week a year earlier.

The seasonally adjusted insured unemployment rate was unchanged at
2.9% in the December 31 week. The current rate was still well below the
3.1% 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 5,885 in the December
24 week, bringing that category to 2,926,676. Extended benefits claims
plunged by 42,576 to 528,215 not seasonally adjusted in the same week.

The Labor Department reported that a total of 7,333,213 persons
claimed unemployment benefits in the December 24 week, a rise of 111,010
from the previous week, but still well below the 9,194,923 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$]