Weekly Initial Unemployment Claims
The market was expecting the weekly initial unemployment claims at 265,000 to 295,000 (consensus 282,000) vs the 281,000 reported. The more important (because of the volatility in the weekly reported claims and seasonality errors in adjusting the data) 4 week moving average moved from 279,250 (reported last week as 279,500) to 282,500. The rolling averages generally have been equal to or under 300,000 since August 2014.
It should be pointed out that Econintersect watches the year-over-year change on the 4 week moving average. There is always some seasonality which migrates into the seasonally adjusted data, and year-over-year comparisons helps remove some seasonality. The four week rolling average of initial claims are 8.6% lower (worse than the 10.3% for last week) than they were in this same week in 2014.
Weekly Initial Unemployment Claims – 4 Week Average – Seasonally Adjusted – 2011 (red line), 2012 (green line), 2013 (blue line), 2014 (orange line). 2015 (violet line)
Claim levels remain near 40 year lows (with the normal range around 350,000 weekly initial unemployment claims of levels seen historically during times of economic expansion – see chart below).
From the Department of Labor:
In the week ending July 11, the advance figure for seasonally adjusted initial claims was 281,000, a decrease of 15,000 from the previous week’s revised level. The previous week’s level was revised down by 1,000 from 297,000 to 296,000. The 4-week moving average was 282,500, an increase of 3,250 from the previous week’s revised average. The previous week’s average was revised down by 250 from 279,500 to 279,250. There were no special factors impacting this week’s initial claims.
The advance seasonally adjusted insured unemployment rate was 1.6 percent for the week ending July 4, a decrease of 0.1 percentage point from the previous week’s unrevised rate. The advance number for seasonally adjusted insured unemployment during the week ending July 4 was 2,215,000, a decrease of 112,000 from the previous week’s revised level. The previous week’s level was revised down by 7,000 from 2,334,000 to 2,327,000. The 4-week moving average was 2,264,000, a decrease of 2,500 from the previous week’s revised average. The previous week’s average was revised down by 1,750 from 2,268,250 to 2,266,500.
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