Jobless claims, having risen to 6-month highs and raising questions over the strength of the January labor market, fell back a sizable 16,000 in the January 23 week to a lower-than-expected 278,000. The consensus was calling for 285,000 with the low estimate at 281,000. The 4-week average is also down, 2,250 lower to a 283,000 level that continues, however, to trend slightly higher than the month-ago comparison.
But continuing claims, where data lag by a week, rose a steep 49,000 in the January 16 week to 2.268 million for the highest reading since August. The reporting week here (perhaps ominously) matches the sample week of the monthly employment report. The 4-week average is up 15,000 to 2.246 million which is the highest reading since September. And the unemployment rate ticked higher, up 1 tenth to what is still a very low 1.7 percent.
The reporting week for initial claims was a shortened holiday week which always raises adjustment questions and takes some of the impact from the weekly decline. This, while the gain in continuing claims raises new questions over how strong the January employment report will prove.
Hanover Advisors Inc. issued this content on 28 January 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 28 January 2016 18:05:04 UTC
Original Document: http://www.hanoveradvisorsinc.com/jobless-claims-6
