Initial U.S. jobless claims increased 7,000 to 372,000 for the week ended May 24 - - slightly above the consensus estimate,
the U.S. Labor Department announced Thursday. Claims for the previous week were revised 6,000 lower to 368,000.
Economists
surveyed by Bloomberg News had expected this week's initial jobless claims to total 370,000.
Also, the four-week moving average decreased 2,500 to 370,500. Economists view the four-week average as a better indicator of unemployment conditions, as it smooths-out anomalies for strikes, holidays, or other idiosyncratic events.
The largest increases in initial claims for the week ending May 17 were in: Pennsylvania, +1,695, Missouri, +1,192, South Carolina, +1,045, Indiana, +919, and Kentucky, +811. The largest decreases were in: Michigan, -3,898, North Carolina, -2,610, Georgia, -1,537, New York, -1,421, and Louisiana, -1,333.
Meanwhile, the number of continuing claims increased 36,000 to 3.104 million from a revised 3.068 million for the week ended May 17, the latest period for which figures were available. Further, the 3.104 million total was the highest continuing claims level since February 2004.
Economic Analysis: A poor weekly jobless report - - one that indicates the job market continues to deteriorate. Weekly claims were above the consensus estimate, and although the four-week moving average dipped, it is still at an elevated level, and above the U.S. Federal Reserve's 'danger level' of 350,000. Further, the continuing claims total remains over three million - - an indication of the difficultly U.S. adults are having trying to secure new employment. That statistic, combined with an elevated four-week average, indicates that labor market conditions are softening - - a decided negative for the U.S. economy.