Unemployment Insurance Weekly Claims Report Better than Forecast

The Labor Department said weekly jobless claims fell by 15,000 to 234,000 for the week ending January 14, lower than the 254,000 estimate. The unemployment insurance weekly claims report also said the prior week was revised higher by 2,000 to 249,000.

No state was triggered “on” the Extended Benefits program during the week ending December 31 and a Labor Department analyst said there were no special factors impacting this week’s initial claims.

The four-week moving average–widely considered a better gauge, as it irons out ups and downs–came in at 246,750, a decline of 10,250 from the previous week’s revised average. This is the lowest level for this average since November 3, 1973, when it was 244,000. However, it is also true that the labor force participation is roughly as low as it was in the 1970s and long-term unemployment has simply shrunk the eligible pool of applicant.s

The previous week’s average was revised up by 500 from 256,500 to 257,000.

The highest insured unemployment rates in the week ending December 31 were in Alaska (4.4), New Jersey (3.1), Montana (3.0), Rhode Island (2.9), Pennsylvania (2.7), Connecticut (2.6), Illinois (2.6), Massachusetts (2.6), Minnesota (2.6), Iowa (2.5), and Puerto Rico (2.5).

The largest increases in initial claims for the week ending January 7 were in New York (+23,082), Georgia (+10,614), Texas (+9,686), Pennsylvania (+6,039), and California (+6,000), while the largest decreases were in New Jersey (-4,372), Michigan (- 3,414), Washington (-3,267), Kentucky (-2,896), and Iowa (-2,379).