Highlights
Jobless claims eased back, down 13,000 for initial claims to 432,000 and down 17,000 for continuing claims to 3.362 million. Both levels remain very high, consistent with continued contraction in payrolls. The four-week average for initial claims rose 7,250 in the Aug. 16 week to 445,750, a level that is nearly 70,000 higher than the July 12 week -- a comparison between survey weeks of the monthly household employment survey. But initial claims data over the past several weeks have been skewed higher by Washington's counter-cyclical effort to widen eligibility for benefits. The Labor Department said the program is affecting claims but to an unknown degree. The four-week average for continuing claims rose nearly 70,000 to 3.330 million for a nearly five-year high. The dollar firmed and Treasury yields rose, both only briefly, in reaction to the headline decline in initial claims. Otherwise, the report points to another month of disappointment for the next employment report.