Global| Dec 15 2011U.S. Initial Unemployment Insurance Claims Fall Sharply
by:Tom Moeller
|in:Economy in Brief
Summary
In another sign of labor market healing, initial claims for unemployment insurance dropped sharply last week to 366,000 from 385,000 (revised from 382,000) during the week prior. The latest reading was the lowest since May 2008. [...]
In another sign of labor market healing, initial claims for unemployment insurance dropped sharply last week to 366,000 from 385,000 (revised from 382,000) during the week prior. The latest reading was the lowest since May 2008. Expectations had been for 390,000 claims in the Action Economics survey. The 4-week moving average of claims fell to 387,750, also its lowest since 2008. During the last ten years there has been a 75% correlation between the level of claims and the m/m change in payroll employment.
Continuing claims for unemployment insurance were roughly stable at 3.603M in the December 3rd week, the lowest level since September 2008. The insured unemployment rate held steady at 2.9%, also its lowest since 2008. By state, the rate varied as of November 26th with North Dakota (0.9%), Virginia (1.5%), Texas (2.0%), Florida (2.2%), Indiana (2.2%) and Tennessee (2.3%) at the low end of the range. At the high end were rates in New York (3.2%), South Carolina (3.3%), New Jersey (3.8%), Pennsylvania (4.0%), California (4.1%) and Oregon (4.5%).
The grand total of those receiving unemployment insurance, including extended programs run by the states and the federal government, jumped w/w to 7.450M (-19% y/y) as of November 26. Regular extended benefits, with eligibility dependent on conditions in individual states, also jumped to 593,097 (-39.3% y/y) and those on the special "EUC 2008" programs rose sharply to 3.050M (-20.9% y/y).
Data on weekly unemployment insurance programs are contained in Haver's WEEKLY database, including the seasonal factor series, and they are summarized monthly in USECON. Data for individual states, including the unemployment rates that determine individual state eligibility for the extended benefits programs and specific "tiers" of the emergency program, are in REGIONW, a database of weekly data for states and various regional divisions. Action Economics estimates are in AS1REPNA.
| Unemployment Insurance (000s) | 12/10/11 | 12/3/11 | 11/26/11 | Y/Y% | 2010 | 2009 | 2008 |
|---|---|---|---|---|---|---|---|
| Initial Claims | 366 | 385 | 404 | -14.3 | 461 | 577 | 413 |
| Continuing Claims | -- | 3,603 | 3,599 | -13.5 | 4,544 | 5,807 | 3,338 |
| Insured Unemployment Rate (%) | -- | 2.9 | 2.9 | 3.4 (11/10) |
3.6 | 4.4 | 2.5 |
| Total "All Programs" (NSA) | -- | -- | 7.450M | -19.0 | 9.850M | 9.163M | 3.903M |
Tom Moeller
AuthorMore in Author Profile »Prior to joining Haver Analytics in 2000, Mr. Moeller worked as the Economist at Chancellor Capital Management from 1985 to 1999. There, he developed comprehensive economic forecasts and interpreted economic data for equity and fixed income portfolio managers. Also at Chancellor, Mr. Moeller worked as an equity analyst and was responsible for researching and rating companies in the economically sensitive automobile and housing industries for investment in Chancellor’s equity portfolio. Prior to joining Chancellor, Mr. Moeller was an Economist at Citibank from 1979 to 1984. He also analyzed pricing behavior in the metals industry for the Council on Wage and Price Stability in Washington, D.C. In 1999, Mr. Moeller received the award for most accurate forecast from the Forecasters' Club of New York. From 1990 to 1992 he was President of the New York Association for Business Economists. Mr. Moeller earned an M.B.A. in Finance from Fordham University, where he graduated in 1987. He holds a Bachelor of Arts in Economics from George Washington University.
More Economy in Brief
