·
Initial unemployment insurance claims dropped a sharp 43,000 to 317,000
and more than reversed all of the gains during the prior two weeks. The
latest was the lowest claims level since early July and the prior week
was revised up slightly. The Consensus expectation had been for 345,000
claims.
· The four week moving average of initial claims fell to 337,750 (-8.2% y/y).
· During the last ten years there has been a (negative) 82% correlation between the level of initial claims and the y/y change in payroll employment.
· Continuing claims for unemployment insurance dropped 50,000 following a downwardly revised 69,000 rise the prior week.
· The insured rate of unemployment remained at 2.2%, where it's been since early October.