Highlights
Initial jobless claims show improvement but only mild improvement for the labor market. Initial claims in the May 8 week slipped 4,000 to 444,000, a dip offset by a 4,000 upward revision to the prior week. But the four-week average is improving, down 9,000 to 450,500 for the lowest level since late March and the second healthiest level of the recovery.
Continuing claims for the May 1 week rose slightly to 4.627 million while the four-week average also rose slightly to 4.640 million. The jobless rate for insured workers is unchanged at 3.6 percent.
Though claims at these levels have been consistent with sizable payroll growth in recent months, the lack of significant improvement will limit confidence that payroll growth in May will also prove sizable. Markets are showing no significant reaction.
Market Consensus Before Announcement
Initial jobless claims improved for a third straight week for the May 1 week, falling 7,000 to 444,000 and pulling the four-week average down 4,750 to 458,500. Continuing claims for the April 24 week fell 59,000 to 4.594 million.
Definition
New unemployment claims are compiled weekly to show the number of individuals who filed for unemployment insurance for the first time. An increasing (decreasing) trend suggests a deteriorating (improving) labor market. The four-week moving average of new claims smoothes out weekly volatility. Why Investors Care