Thursday, January 27, 2011

Weekly Initial Unemployment Claims increase sharply to 454,000

by Bill McBride on 1/27/2011 08:42:00 AM

The DOL reports on weekly unemployment insurance claims:

In the week ending Jan. 22, the advance figure for seasonally adjusted initial claims was 454,000, an increase of 51,000 from the previous week's revised figure of 403,000. The 4-week moving average was 428,750, an increase of 15,750 from the previous week's revised average of 413,000.
Weekly Unemployment Claims Click on graph for larger image in new window.

This graph shows the 4-week moving average of weekly claims for the last 10 years. The dashed line on the graph is the current 4-week average. The four-week average of weekly unemployment claims increased this week by 15,750 to 428,750.

This was much higher than consensus expectations. The recent decline in the four week average has been good news - and this large increase (just one week) is concerning. Blame it on the snow ...