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Jobless claims average up, total claims highest since February

July 09, 2015

The US four-week moving average of initial claims for unemployment insurance rose by 4,500 last week to a total of 279,500 from the previous week’s upwardly revised average, according to seasonally adjusted numbers released today by the US Department of Labor.

The four-week moving average decreases the volatility of the weekly numbers. Total initial claims for unemployment insurance for the week ended July 4 rose by 15,000 to a total of 297,000 from the previous week’s upwardly revised level.

No special factors affected this week’s initial claims.

Bloomberg reports claims rose more than its median forecast of 48 economists, which called for 275,000 claims, but cautioned the data can be volatile this time of year because of the Fourth of July holiday and seasonal auto plant shutdowns.

Reuters reports new applications for US unemployment insurance benefits rose last week to their highest level since February, suggesting some slowdown in the labor market recovery. Jesse Hurwitz, an economist at Barclays Capital, said because of the holiday and auto plant shutdowns, he was inclined to look past the volatility in the report, according to Reuters.

“Trend readings of both initial and continuing claims remain low from a historical perspective, which we expect to continue,” Hurwitz said.