On Thursday, the Labor Department said the number of initial claims for unemployment insurance dropped unexpectedly to a seasonally adjusted 623,000, from a revised figure of 636,000 in the previous week. It was below analysts' estimates of 635,000.
The four-week average of initial jobless claims dropped slightly to 626,750, about 30,000 below the peak for the recession reached in early April. Still, compare to last year, it's not like it's great news. Weekly initial claims were 378,000 a year ago.
Meanwhile, the number of people continuing to receive unemployment benefits rose to 6.78 million, the largest total on record dating back to 1967 and the 17th consecutive record week. Remember that the figures for continuing claims lag initial claims numbers by one week.
Among states, California reported the largest increase in new jobless claims, 5,447. It attributed this to layoffs in the construction, trade, and service industries. State data also lags initial national claims numbers by a week. The next largest state increases were in North Carolina, Georgia, Washington and Florida.
Somewhat amazingly, Michigan reported the largest decrease in new jobless claims, a drop of 9,758. Michigan said this was due to fewer layoffs in the auto industry. Of course, this could all turn around if GM has to declare bankruptcy, or realistically, even it the troubled automaker does not.
The next largest decreases were in Kentucky, Illinois, Indiana and Ohio.
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