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 6/14/07 For wk 6/9 2007 | ||||||||||||
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Highlights
Weekly jobless claims were unchanged in the June 9 week at 311,000, right at the four-week average which rose slightly to 311,250. There were no special factors in the latest week. The Labor Department told Market News International that seasonal adjustments were very accurate in the week, compensating for a pop higher following the shortened Memorial Day week.
Continuing claims for the June 2 week, the most recent week available, slipped back 43,000 to 2.487 million. The four-week average is at 2.501 million.
Claims data remain consistent with tight conditions in the labor market, a possible concern for the Federal Reserve which is keeping a close eye on labor costs. Next week's claims report will get more attention from the markets as the initial claims period will correspond with the survey week of the monthly employment report.
Initial jobless claims data continue to point to tight conditions in the labor market. Initial claims fell 1,000 in the June 2 week to a nearly as-expected 309,000, a level right at the four-week average of 307,250. Despite the Memorial Day weekend, the Labor Department said there were no special factors in the week. Continuing claims did hint at weakness, up 72,000 in the May 26 week though the four-week average actually slipped slightly to 2.498 million. Financial markets showed no reaction to the data.
Jobless Claims Consensus Forecast for 6/9/07: 310,000
Range: 305,000 to 315,000
![[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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