First Time Jobless Claims Rise 17K

Initial claims did jump 17,000 higher in the April 30 week to 274,000 but the 4-week average is up only 2,000 to a 258,000 level that is still slightly below the month-ago trend. And a strong positive in the report is an extending decline for continuing claims, down 8,000 in lagging data for the April 23 week to 2.121 million. The 4-week average for continuing claims is at 2.140 million which is nearly 50,000 below the month-ago trend. Another positive in the report is a 1 tenth decline in the unemployment rate for insured workers, which is at 1.5 percent for a new record low.

This report, despite the weekly jump in initial claims, is unlikely to affect expectations for what is expected to be a strong employment report tomorrow where the sample week, which was the April 16 week, precedes the sample weeks in today's report. Unemployment claims remain near or at historic lows. There are no special factors in the report.

Recent History Of This Indicator:
Initial jobless claims have been trending convincingly lower and have pulled the 4-week average to a 42-year low. Forecasters see claims edging only slightly higher in the April 30 week, to 262,000 vs 257,000 in the prior week. Continuing claims have also been low, further confirming strength in the labor market.