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Jobless claims average unchanged, but initial claims jump 10,000

July 27, 2017

The US four-week moving average of initial claims for unemployment insurance was 244,000 last week, unchanged from the previous week’s average, according to seasonally adjusted numbers released today by the US Department of Labor. The previous week’s average was revised upward by 250.

The four-week moving average decreases the volatility of the weekly numbers. Total initial claims for unemployment insurance for the week ended July 22 rose to 244,000, up 10,000 from the previous week’s level, which was revised upward by 1,000.

Reuters reports the number of Americans filing for unemployment benefits rebounded from a three-month low last week, but remained below a level consistent with a tightening labor market. Claims have been volatile in recent weeks as automakers shut assembly plants for annual retooling. Some manufacturers are extending their summer shutdowns to manage excess inventory from declining sales, and economists say this could be throwing off the model used by the government to strip out seasonal fluctuations from the data, causing swings in the weekly numbers.