After last week's unexpected, and massive jump to 478,000 new unemployment claims, this week settled in at a high but expected 434,000 initial claims.



Please consider the Department of Labor Unemployment Insurance Weekly Claims Report for the week ending May 7, 2011.

In the week ending May 7, the advance figure for seasonally adjusted initial claims was 434,000, a decrease of 44,000 from the previous week's revised figure of 478,000. The 4-week moving average was 436,750, an increase of 4,500 from the previous week's revised average of 432,250.

Weekly Claims Moving Average Trending Higher for a Month

4-Week Moving Average of Initial Claims

Last Week's Explanations Reviewed

The number of claims for U.S. unemployment benefits unexpectedly rose last week, pushed up by auto-plant shutdowns and other unusual events that seasonal variations failed to take into account, the Labor Department said.



A spring break holiday at schools in the state of New York prompted workers to file claims, which the seasonal adjustment factors didn’t expect last week, the Labor Department official said. In addition, Oregon began a new emergency benefits program for the long-term unemployed that also pulled in some new claimants, he said. Finally, auto plant shutdowns due to parts shortages caused by the earthquake and tsunami in Japan also contributed to the increase, the official said.

Last Week's Excuse Evaluated

The largest increases in initial claims for the week ending April 30 were in New York (+24,431), Michigan (+3,948), Wisconsin (+3,746), North Carolina (+2,749), and Ohio (+2,319), while the largest decreases were in New Jersey (-4,004), California (-3,145), Massachusetts (-2,966), Puerto Rico (-2,713), and Florida (-2,156).