Jobless Claims: New Claims Increase Moderately

Bottom Line: Initial claims climbed moderately and are at their highest level since February 2015. The 4-week average is at 268k, above the 13-week average that is now 264k, indicating the labor market trends are deteriorating slightly in the past 2 weeks. The continuing claims rose slightly but still remained on their 6-year long declining trend. Jobless Claims ROSE by 20k during the week ended May 7th to 294k, the highest level since February 2015, compared with market expectations for a decline to 270k. The 4-week average ROSE by 10k to 268k and the 13 week average ROSE by 3k to 264k. Initial claims have been on a declining trend over the past 6 years but the pace of decline has now slowed. Continuing Claims ROSE by 37k during the week ended April 30th to 2,161k, after the prior week was revised slightly higher from 2,121k to 2,124k. The 4-week average FELL by 4k to 2,137k. Despite this week's increase, continuing claims have also been on a declining trend for more than 6 years. On a non-seasonally adjusted basis, Continuing Claims FELL by 18k to 2,077k during the week ended April 23rd. 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 30th. The insured jobless rate only reflects the number of people collecting regular state unemployment insurance.