|
Initial claims for state unemployment benefits declined 26,000
to a seasonally adjusted 255,000 for the week ended July 18, the
lowest level since November 1973, the Labor Department said on
Thursday. Claims for the prior week were unrevized.
However, last week's drop likely exaggerates the strength of the
labor market as claims are volatile during summer when
automakers usually shut assembly plants for annual retooling.
Some firms keep production lines running, which throws off a
model the government uses to smooth the data for seasonal
variations. A Labor Department analyst said there were no
special factors influencing the data and that only claims for
Puerto Rico had been estimated.
The four-week moving average of claims, considered a better
measure of labor market trends as it irons out week-to-week
volatility, fell only 4,000 to 278,500 last week. The claims
data covered the period during which the government surveyed
employers for the nonfarm payrolls portion of July's employment
report.
Though the four-week moving average of claims increased 1,500
between the June and July survey periods, payroll growth likely
remained above the 200,000 threshold this month.
The four-week moving average of claims has been below the key
300,000 mark, which is normally associated with sturdy job
gains, for 17 straight weeks - an unusually long stretch.
Thursday's claims report showed the number of people still
receiving benefits after an initial week of aid fell 9,000 to
2.21 million in the week ended July 11.
(Reporting by Lucia Mutikani; Editing by Andrea Ricci)
[© 2015 Thomson Reuters. All rights
reserved.] Copyright 2015 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
 |
|
