Details from the release:
Initial jobless claims: 194,000, down 6,000 for the week ending October 17. Prior revised to 200,000 from 199,000.
Initial claims four-week average: 197,750, down 1,000. Prior revised to 198,750 from 198,500.
Continuing claims: 1,728,000 vs 1,720,000 est., up 25,000 for the week ending October 10. Prior revised to 1,703,000 from 1,710,000.
Continuing claims four-week average: 1,711,000, up 4,000. Prior revised to 1,707,000 from 1,708,750.
Insured unemployment rate: 1.1%, unchanged.
US initial jobless claims fell to 194,000, according to the Department of Labor’s weekly report. The decline reverses the previous week’s increase, while the four-week average moved lower as well. Both point to employers continuing to hold on to workers.
The offset came from continuing claims, which increased 25,000 to 1.728 million. That suggests some difficulty finding another job among workers receiving benefits, although one weekly increase does not establish a trend.
Before seasonal adjustment, initial claims fell 19,321, a larger decline than the 14,179 anticipated by seasonal factors. Unadjusted initial and continuing claims also remained below their comparable year-earlier levels.
Quick analysis: Fewer new claims are encouraging, but the hiring side still bears watching. This report gives the Fed little evidence of a sharp deterioration in employment. In isolation, the lower initial reading could support the dollar and Treasury yields by reducing the urgency for rate cuts. The increase in continuing claims tempers that signal. The question now is whether that increase persists.
What this report measures: Initial claims count new applications for unemployment insurance and provide a timely indication of layoffs. Continuing claims track ongoing benefit claims and can help show how quickly unemployed workers are finding jobs. The headline figures are seasonally adjusted, subject to revision, and cover different weeks, with continuing claims lagging initial claims by one week.
This article was written by Greg Michalowski at investinglive.com.
Source: Investing Live - News
