Initial claims for unemployment insurance rose 16,000 last week to 333,000 following the huge 43,000 drop the week prior that was little revised. Consensus expectations had been for a larger rise to 345,000.

The 4-week moving average of initial claims was stable at 338,000 (-16.6% y/y). During the last ten years there has been an 81% (negative) correlation between the monthly average of initial claims and the y/y change in payroll employment.

Continuing claims for unemployment insurance fell 3,000 following a downwardly revised 7,000 gain the week prior.

The insured rate of unemployment remained at 2.3%, where it has hovered since the end of April.

"Two Measures of Employment: How Different Are They?" from the Federal Reserve Bank of San Francisco can be found here.