Jobless Claims Unexpectedly Jump 32,000 to 360,000

In the week ending May 11, the advance figure for seasonally adjusted initial claims was 360,000, an increase of 32,000 from the previous week's revised figure of 328,000. The previous week was revised upward from 323,000 new claims. This compares to the year-ago figure of 373,000. This was the highest level in six weeks. Estimates ranged from 315,000 to 355,000. The 4-week moving average was 339,250, an increase of 1,250 from the previous week's revised average of 338,000. Jobless claims bounce around from week to week, so analysts prefer to focus on the 4-week moving average. Aside from typical volatility in the weekly numbers, the Department of Labor did not report any unusual factors affecting this week's claims data, and no states were estimated. The advance seasonally adjusted insured unemployment rate was 2.3 percent for the week ending May 4, unchanged from the prior week's unrevised rate. The advance number for seasonally adjusted insured unemployment during the week ending May 4 (reported with a one-week lag) was 3,009,000, a decrease of 4,000 from the preceding week's revised level of 3,013,000. A year ago, the figure was 3,309,000. The 4-week moving average was 3,015,250, a decrease of 21,000 from the preceding week's revised average of 3,036,250. For those who have used up their traditional benefits, states reported 1,792,101 persons claiming EUC (Emergency Unemployment Compensation) benefits for the week ending April 27 (reported with a two-week lag), an increase of 28,924 from the prior week. There were 2,666,055 persons claiming EUC in the comparable week in 2012. EUC weekly claims include first, second, third, and fourth tier activity. Some of these people may see their benefits cut or expire with the budget cut provisions that are part of the sequester. The total number of people claiming benefits in all programs for the week ending April 27 was 4,843,806, a decrease of 30,720 from the previous week. There were 6,273,508 persons claiming benefits in all programs in the comparable week in 2012. The highest insured unemployment rates in the week ending April 27 were in Alaska (5.1 percent), Puerto Rico (4.4), California (3.4), New Jersey (3.3), New Mexico (3.3), Connecticut (3.2), Pennsylvania (3.1), Nevada (3.0), Oregon (3.0), and Wisconsin (3.0). Twenty-eight states and territories reported a decrease in claims, while 25 reported an increase. The largest increases in initial claims for the week ending May 4 were in Georgia (+2,212), New Mexico (+1,539), Kentucky (+892), Tennessee (+668), and Ohio (+552), while the largest decreases were in Connecticut (-1,434), New Hampshire (-867), Massachusetts (-756), Wisconsin (-730), and Rhode Island (-702).