First Time Jobless Claims Fall 6K

The labor market once again, against a background of soft data, shows itself as the economy's leading positive. Initial claims fell 6,000 in the April 16 week to a much lower-than-expected 247,000. This is the lowest level since 1973 when, of course, the size of the labor market was much smaller. The 4-week average is down 4,500 to 260,500.

The April 16 week is important as it is the sample week for the April employment report and a comparison with the sample week of the March employment is positive to mixed. The weekly level is down 12,000 but the 4-week average is up fractionally. Continuing claims, in lagging data for the April 9 week, fell 39,000 to 2.127 million which is the lowest for this series since 2000.

Employers are holding onto their employees in convincing confirmation of the strength of the nation's labor market. This report points to another solid reading for the monthly employment report.

Recent History Of This Indicator:
Initial jobless claims may be hard to read for the April 16 week, an important week that is the sample week for the April employment report. A large 12,000 gain to 265,000 is expected but it comes from a very low 253,000 in the prior week. The 4-week average will perhaps be the most important reading and looks, based on the consensus, to be unchanged also at 265,000, a level that would only be slightly above the sample week of the March employment report. Low levels of unemployment claims point to healthy demand for labor.