First Time Jobless Claims Up 8K, Still Favorable

New claims are steady and low and consistent with strong demand for labor. Though up 8,000 in the July 27 week, new claims remain favorable at 215,000 with the 4-week average especially favorable at 211,500. Continuing claims in lagging data for the July 20 week rose 22,000 with this 4-week average, however, only inching higher to 1.698 million. Both the 4-week averages have been moving lower especially new claims which are positive indications for strength in tomorrow's employment report for July. The Econoday consensus is looking for a 1 tenth dip in July's unemployment rate to 3.6 percent while today's unemployment rate for insured workers remains at 1.2 percent. This report together with this morning's Challenger report point to decreasing layoffs and increasing strength for jobs.