First Time Jobless Claims Jump 20K

There are no special factors behind a very large jump, the second large jump in a row, in initial jobless claims, up 20,000 in the May 7 week following a 17,000 rise in the prior week. The week's 294,000 level is the highest since February this year. The 4-week average is up a very sharp 10,250 to a 268,250 level that is still, nevertheless, stable against the month-ago comparison.

Continuing claims are also up in the latest data, 37,000 higher in lagging data for the April 30 week to 2.161 million. But the 4-week average continues to steadily improve, down 4,000 to a 2.137 million level that is modestly below a month ago.

The gains in initial claims are unsettling but not definitive. Next week's report, which will cover the sample week of the May employment report, will be watched with extra attention.

Recent History Of This Indicator:
Forecasters see a dip back for initial jobless claims after they jumped higher in the April 30 week. But initial claims nevertheless remain near historic lows as do continuing claims which are reported with a week's lag. The Econoday consensus for initial claims in the May 7 week is 267,000 which would make for a 7,000 decline.