Thursday, January 19, 2017

Weekly Initial Unemployment Claims decrease to 234,000

by Bill McBride on 1/19/2017 08:42:00 AM

The DOL reported:

In the week ending January 14, the advance figure for seasonally adjusted initial claims was 234,000, a decrease of 15,000 from the previous week's revised level. The previous week's level was revised up by 2,000 from 247,000 to 249,000. The 4-week moving average was 246,750, a decrease of 10,250 from the previous week's revised average. This is the lowest level for this average since November 3, 1973 when it was 244,000. The previous week's average was revised up by 500 from 256,500 to 257,000.

There were no special factors impacting this week's initial claims.
emphasis added
The previous week was revised up.

The following graph shows the 4-week moving average of weekly claims since 1971.

Click on graph for larger image.


The dashed line on the graph is the current 4-week average. The four-week average of weekly unemployment claims decreased to 246,750.

This was below the consensus forecast.  This is the lowest level for the four week average since 1973 (with a much larger population).

The low level of claims suggests relatively few layoffs.