Jobless Claims Indicate Strong Monthly BLS Employment Situation

Initial jobless claims came in at a seasonally adjusted 222,000 for the week ending May 12, a gain of 11,000 but indicative of a strong monthly Employment Situation report from the Labor Department (DOL).

The 4-week moving average — which is widely considered a better gauge, as it irons out weekly volatility — was 213,250, a decline of 2,750 from the previous week’s unrevised average of 216,000. This is the lowest level for this average since December 13, 1969 when it was 210,750.

Claims taking procedures in Puerto Rico and in the Virgin Islands have still not returned to normal and extended benefits were payable in the Virgin Islands during the week ending April 28.

The advance seasonally adjusted insured unemployment rate was 1.2% for the week ending May 5, down 0.1% from the previous week’s unrevised rate. The advance number for seasonally adjusted insured unemployment during the week ending May 5 was 1,707,000, a decrease of 87,000 from the previous week’s revised level.

This is the lowest level for insured unemployment since December 1, 1973 when it was 1,692,000.

The previous week’s level was revised up 4,000 from 1,790,000 to 1,794,000. The 4-week moving average was 1,773,750, a decrease of 39,750 from the previous week’s revised average. This is the lowest level for this average since December 22, 1973 when it was 1,756,000.

The previous week’s average was revised up by 1,000 from 1,812,500 to 1,813,500.

The highest insured unemployment rates in the week ending April 28 were in the Virgin Islands (4.1), Alaska (3.1), California (2.2), New Jersey (2.1), Puerto Rico (2.1), Connecticut (2.0), Pennsylvania (1.8), Illinois (1.7), and Rhode Island (1.6).

The largest increases in initial claims for the week ending May 5 were in Texas (+1,694), Ohio (+1,682), Pennsylvania (+1,655), Georgia (+965), and Alabama (+528), while the largest decreases were in Wisconsin (-1,829), California (-875), Connecticut (-770), New Hampshire (-374), and Massachusetts (-359).