The Labor Department Thursday said weekly jobless claims rose for the week ended May 2 by 3,000 to a seasonally adjusted 265,000. While that number represents a near 15-year low, it is important to note that the Labor Department has since changed its methodology for calculating weekly jobs claims, and the report comes on the heels of an abysmal ADP National Employment Report.
However, claims have been below 300,000 for nine weeks, the threshold that is usually associated with a strengthening labor market. Economists polled by Reuters had forecast claims rising to 280,000 last week.
A Labor Department analyst said there was nothing unusual in the state-level data.
Meanwhile, the four-week average — which is considered a better measure of labor market trends as it irons out week-to-week volatility — decreased by 4,250 last week to 279,500, or the lowest since May 2000.
Worth noting, the data has no bearing on Friday’s employment report for April as it falls outside the survey period.
According to a Reuters survey of economists, nonfarm payrolls are expected to have increased by 224,000 in April after adding just 126,000 in March. Still, April’s employment report could have no real information on the strength of the economy’s recovery, as first-quarter growth initially estimated at 0.2 percent is likely to be revised down to show contraction.
The claims report showed the number of people still receiving benefits after an initial week of aid declined 28,000 to 2.23 million in the week ended April 25. That was the lowest reading since November 2000 and suggested more long-term unemployed are getting jobs.
