Jobless Claims: New Claims Increase Modestly

Bottom Line: Initial claims climbed modestly after dropping to their lowest level in over 40 years last week. The 4-week average is at 256k, below the 13-week average that is now 262k, indicating the labor market trends are improving modestly. The continuing claims fell slightly and remained on their 6-year long declining trend. Jobless Claims ROSE by 9k during the week ended April 23rd to 257k, compared with market expectations for an increase to 259k. The prior week estimate was revised slightly higher to 248k. The 4-week average FELL by 5k to 256k and the 13 week average FELL by 1k to 262k. Initial claims have been on a declining trend over the past 6 years but the pace of decline has now slowed. Continuing Claims FELL by 5k during the week ended April 16th to 2,130k, after the prior week was revised slightly lower to 2135k. The 4-week average FELL by 11k to 2,158k. Continuing claims have also been on a declining trend for more than 5 years. On a non-seasonally adjusted basis, Continuing Claims FELL by 57k to 2,156k during the week ended April 9th. Continuing claims have been declining amid modest volatility for the past six years. The Insured Jobless Rate STAYED at 1.6% during the week ended April 16th. The insured jobless rate only reflects the number of people collecting regular state unemployment insurance.