Jobless Claims: New Claims Decline Slightly

Bottom Line: Initial claims declined slightly and are at their lowest level in the past 5 weeks. The 4-week average is at 277k, above the 13-week average that is now 266k, normally a potential indicator of a deteriorating trend were it not for the unique volatility from New York data in the last 4 weeks. Jobless Claims FELL by 1k during the week ended May 28th to 267k, compared with market expectations for an increase to 270k. The 4-week average FELL by 2k to 277k and the 13 week average was UNCHANGED at 266k. 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 12k during the week ended May 21st to 2,172k, after the prior week was revised slightly lower from 2,163k to 2,160k. The 4-week average ROSE by 12k to 2,163k. 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 32k to 1,977k during the week ended May 14th. 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 May 21st. The insured jobless rate only reflects the number of people collecting regular state unemployment insurance.