Initial Jobless Claims Falls Back 16K

Concerns over gains in jobless claims look to be misplaced given sharp declines across readings of the latest report. Initial claims fell a very steep 16,000 in the February 6 week to a much lower-than-expected level of 269,000. This is the lowest reading since mid-December. The 4-week average, at 281,250, is down 3,500 which is a sizable decrease for this reading.

Continuing claims, which also had been moving higher, likewise moved down, to 2.249 million for a 21,000 decline in data for the January 30 week. The 4-week average is down 6,000 to 2.248 million while the unemployment rate for insured workers is also down, 1 tenth lower at 1.6 percent.

One of the few cracks that had been appearing in the labor market was a general rise in unemployment claims, cracks that may be disappearing. But further improvement is still needed, setting up what will be a key report next week that for initial claims will cover the sample week of the monthly employment report. There are no special factors in today's report.

Recent History Of This Indicator:
Initial jobless claims have been on the climb as have continuing claims, signaling weakness for what is still however a very solid labor market. The Econoday consensus is calling for a 4,000 fall in initial claims for the February 6 week to 281,000.