New unemployment claims are compiled weekly to show the number of individuals who filed for unemployment insurance for the first time. An increasing (decreasing) trend suggests a deteriorating (improving) labor market. The four-week moving average of new claims smoothes out weekly volatility. Why Investors Care
| Released on 5/10/07 For wk 5/5 2007 | ||||||||||||
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Highlights
Initial jobless claims for the week ended May 5 fell 9,000 to a much better-than-expected level of 297,000 and pushing the four-week average down sharply to 317,250 and a level consistent with steady growth in the labor market. The results, released with trade and import price data, didn't move the markets, at least immediately, but they are a weight on the side of economic strength.
Initial jobless claims dropped 21,000 to a 305,000 level in the April 28 week that was well under expectations. There were no apparent special factors. Jobless claims now appear to be pointing to a little stronger job market than the April employment report which was based on data earlier in the month.
Jobless Claims Consensus Forecast for 5/5/07: 315,000
Range: 295,000 to 325,000
![[Chart]](chart.gif)
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Weekly series fluctuate more dramatically than monthly series even when the series are adjusted for seasonal variation. The 4-week moving average gives a better perspective on the underlying trend. |
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