Initial claims for unemployment insurance dropped another 6,000 to 310,000 last week following a 19,000 decline the week prior that was revised slightly shallower. Consensus expectations had been for an increase to 325,000 claims.

During the last ten years there has been a (negative) 75% correlation between the level of initial claims for unemployment insurance and the monthly change in payroll employment. There has been a (negative) 65% correlation with the level of continuing claims.

The four week moving average of initial claims fell to 323,500 (-6.4% y/y).

Continuing claims for unemployment insurance rose a slight 4,000 following a deepened 42,000 drop the week prior.

The insured unemployment rate remained at 2.0%, the low for this cycle.