–Initial Claims 4-week Moving Average Fell 2,750, 6th Straight Drop
–Continuing Claims Level Falls 19,000 To 3.272 Mln In July 21 Wk

By Kevin Kastner and Ian McKendry

WASHINGTON (MNI) – Initial claims for U.S. state unemployment
benefits rose by 8,000 to 365,000 in the July 28 week, a lower level
than expected, the Labor Department reported Thursday.

The median estimate of economists surveyed by MNI was for 370,000,
a rise of 17,000 from the initially reported 353,000 level in the July
21 week. That week’s claims level was revised up to 357,000.

A Labor Department analyst said there were no special factor in the
current week’s estimated and no states were estimated.

For the July 28 week, the analyst said seasonal factors had
expected a decline of about 10.8%, or 36,711, in unadjusted initial
claims in the week.

Instead, unadjusted claims fell only 8.8%, or 30,083 claims, to a
level of 310,492. Unadjusted claims were at a level of 341,103 in the
comparable week a year ago.

Typically, unadjusted claims spike in the first week of July due to
planned manufacturing shutdowns. That spike is usually followed by three
weeks of declines, the analyst noted. The July 28 week is the last of
those three weeks.

The initial claims seasonally adjusted 4-week moving average fell
for the sixth straight week, down 2,750 to 365,500 in the July 28 week.
This was the lowest level since 363,000 in the March 31 week.

The state data released for the July 21 employment survey week
indicated unadjusted initial claims increased in 5 states and declined
in 47 states, with 1 state unchanged. The District of Columbia, Puerto
Rico, and Virgin Islands are included in this data.

Continuing claims came in at 3.272 million after seasonal
adjustment in the July 21 week, down 19,000 after a decline of 26,000 in
the previous week. Continuing claims were at their lowest level since
3.259 million in the May 19 week.

Unadjusted continuing claims were down 97,192 to 3,239,615 in the
July 21 week, and were still well below the 3,680,729 level in the
comparable week a year ago.

The seasonally adjusted insured unemployment rate held steady at
2.6% for the 19th straight week in the July 21 survey week, down from
the 3.0% 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 the level of unadjusted Emergency
Unemployment Compensation benefits claims fell by 23,628 in the July 14
week, bringing that category total to 2,532,828. Extended benefits
claims fell by 22,920 to 13,207 not seasonally adjusted in the same
week.

The Labor Department reported that a total of 5,964,553 persons
claimed unemployment benefits in the July 14 week, a 69,672 decline from
the previous week and still well below the 7,568,108 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.

** MNI Washington Bureau: 202-371-2121 **

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