Initial Jobless Claims Dip but Remain Higher Than Estimated
A Bloomberg survey had expected initial jobless claims to fall to 448,000. Meanwhile, the more telling four-week moving average -- which smooths out anomalies for holidays, strikes etc. -- increased 2,500 to 463,000.
Jobless claims need to drop below 400,000 during the next two quarters to give economists and investors confidence that commercial activity is increasing at a pace that prompts companies to curtail lay offs and resume hiring.
States also reported 4.99 million persons claiming Emergency Unemployment Compensation benefits for the week ending May 22, the latest week for which data is available, a decrease of 10,588 from the prior week.
The highest insured unemployment rates in the week ending May 22, the latest week for which data is available, were in: Puerto Rico, 6.2%; Alaska, 5.5%; Oregon, 5.3%; California, 4.8%; and Nevada, 4.7%.