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Jobless claims average rises, initial claims hit seven-week high as school year ends

May 24, 2018

The US four-week moving average of initial claims for unemployment insurance rose to 219,750 last week, up 6,250 from the previous week’s average, the US Department of Labor reported. The previous week’s average was revised up by 250.

The four-week moving average decreases the volatility of the weekly numbers. Total initial claims for unemployment insurance for the week ended May 19 rose to 234,000, up 11,000 from the previous week’s level, which was revised up by 1,000.

Claims-taking procedures in Puerto Rico and in the Virgin Islands have still not returned to normal.

MarketWatch reported that while claims rose to a seven-week high, jobless claims often increase in late spring when the school year ends and bus drivers and cafeteria workers no longer have work. The unemployment rate remains extremely low and the biggest problem companies face is finding enough skilled workers to fill a record number of job openings; a steadily growing US economy may only exacerbate that dynamic. Its poll of economists had forecast initial claims to total 219,000.