EmailThe initial claims level increased from 395,000 for the week ending September 24 to 401,000 for the week ending October 1. That was in-line with the Briefing.com consensus expectation of 402,000 new filings.
For the second consecutive week, the initial claims level remained below the upper bound (410,000) of our "Recovery Zone." At this level, payroll growth in excess of the 100,000 needed to support normal labor force growth is expected.
Unlike the drop in initial claims last week, which the Department of Labor attributed to a mistiming in its seasonal adjustment factors, there were no special factors that influenced the claims report this week. Therefore, even though claims inched higher this week, the current level is indicative of an improving labor sector.
The continuing claims level declined from an upwardly revised 3.752 million (from 3.729 million) for the week ending September 17 to 3.700 million for the week ending September 24. The consensus expected the continuing claims level to decline to 3.725 million.
