Jobless Claims Drop 4,000 to 5 1/2 Year Low

The U.S. Department of Labor reported Thursday morning that, in the week ending May 4, the advance figure for seasonally adjusted initial claims was 323,000, a decrease of 4,000 from the previous week's revised figure of 327,000. This is the lowest level of new claims since January 2008. The previous week claims were revised up from 324,000. The 4-week moving average was 336,750, a decrease of 6,250 from the previous week's revised average of 343,000. A Labor Department analyst said no states had been estimated and there was nothing unusual in the state-level data. These level of claims are consistent with a moderate rate of net job gains. The advance seasonally adjusted insured unemployment rate was 2.3 percent for the week ending April 27, unchanged from the prior week's unrevised rate. The advance number for seasonally adjusted insured unemployment in state programs during the week ending April 27 was 3,005,000, a decrease of 27,000 from the preceding week's revised level of 3,032,000. (These data are reported with a one-week lag.) The 4-week moving average was 3,034,250, a decrease of 24,500 from the preceding week's revised average of 3,058,750. There were 1,763,177 persons claiming EUC (Emergency Unemployment Compensation) benefits for the week ending April 20, a decrease of 14,560 from the prior week. (These data are reported with a two-week lag.) There were 2,688,157 persons claiming EUC in the comparable week in 2012. These people are most vulnerable to sequester-related cutbacks in benefit amounts and some may see their benefits expire altogether in coming months. Thus, we may see a drop in the number of continuing, emergency unemployment claims due to expiration of benefits, not necessarily because they have found a job. The total number of people claiming benefits in all programs, including emergency unemployment compensation benefits, for the week ending April 20 was 4,874,526, a decrease of 89,292 from the previous week (these data are reported with a two-week lag). There were 6,423,153 persons claiming benefits in all programs in the comparable week in 2012. The highest insured unemployment rates in the week ending April 20 were in Alaska (5.2 percent), Puerto Rico (4.4), Connecticut (3.5), New Jersey (3.4), New Mexico (3.3), Rhode Island (3.3), Wisconsin (3.3), California (3.2), Pennsylvania (3.2), and Illinois (3.1). The largest increases in initial claims for the week ending April 27 were in Illinois (+1,744), Oregon (+1,244), New Hampshire (+765), Arkansas (+455), and Maine (+379), while the largest decreases were in California (-3,721), Michigan (-2,993), Wisconsin (-2,623), Massachusetts (-2,487), and Florida (-2,062).