Jobless Claims Unexpectedly Fall Further, Labor Demand Strong

The Labor Department said jobless claims unexpectedly fell to 230,000, a decrease of 1,000 from the previous week’s revised level. The median economic forecast called for a raise to 235,000.

The previous week’s level was revised down by 2,000 from 233,000 to 231,000. The report indicates sustained strength in the demand for labor and stability in the labor market.

The 4-week moving average was 234,500, a decrease of 5,000 from the previous week’s revised average. The previous week’s average was revised down by 500 from 240,000 to 239,500.

Claims taking procedures in Puerto Rico and in the Virgin Islands have still not returned to normal.

The advance seasonally adjusted insured unemployment rate was 1.4% for the week ending January 20, unchanged from the previous week’s unrevised rate. The advance number for seasonally adjusted insured unemployment during the week ending January 20 was 1,953,000, an increase of 13,000 from the previous week’s revised level.

The previous week’s level was revised up 3,000 from 1,937,000 to 1,940,000.

The 4-week moving average was 1,932,750, an increase of 12,000 from the previous week’s revised average. The previous week’s average was revised up by 750 from 1,920,000 to 1,920,750.

The highest insured unemployment rates in the week ending January 13 were in the Virgin Islands (8.1), Puerto Rico (4.6), Alaska (4.0), New Jersey (2.9), Montana (2.8), Connecticut (2.7), Illinois (2.6), Pennsylvania (2.6), Massachusetts (2.5), and Rhode Island (2.5).

There were no increases in initial claims for the week ending January 20, the largest decreases were in Pennsylvania (-10,925), Texas (-7,747), California (-7,213), Georgia (-6,438), and New York (-4,954).