The Labor Department said Thursday that weekly jobless claims fell more than expected last week, but the report may not paint a clear picture. Analyst said the department had estimated the claims data for Tennessee, where offices were closed on Tuesday because of bad weather, and the Presidents’ Day holiday shaved off a number of claims.
Initial claims for state unemployment benefits dropped 21,000 to a seasonally adjusted 283,000 for the week ended Feb. 14, while the prior week’s data was unrevised for the first time in months.
Economists polled by Reuters had forecast claims falling to 293,000 last week, but a shortened work week due to Monday’s Presidents Day holiday fueled the unexpectedly bigger decline in claims. Still, analysts remain hopeful the data point to an increasing labor force participation rate, which has artificially pushed the unemployment rate down.
The four-week moving average of claim — which is considered a better measure of labor market trends as it irons out week-to-week volatility — fell 6,500 to 283,250 last week.
Thursday’s claims report showed the number of people still receiving benefits after an initial week of aid rose 58,000 to 2.43 million in the week ended Feb. 7
