Firing Rate Increases: Weekly Jobless Claims Unexpectedly Jump by 12K

The firing rate, or the number of Americans filing new claims for state unemployment benefits unexpectedly increased for the week ended July 25. Weekly jobless claims increased 12,000 to a seasonally adjusted 267,000, the Labor Department said on Thursday. Claims for the prior week were unrevised at 255,000, which was the lowest level since November 1973.

A Labor Department analyst said there were no special factors influencing the data and that only claims for Puerto Rico had been estimated. The four-week moving average of claims — which is widely considered a better measure of labor market trends as it irons out week-to-week volatility — decreased by 3,750 to 274,750. The government has made a series of changes to how claims are calculated, and this week’s data reflects all four weeks of the new change.

Thursday’s claims report showed the number of people still receiving benefits after an initial week of aid rose 46,000 to 2.26 million in the week ended July 18. The so-called continuing claims covered the week during which the government surveyed households for July’s unemployment rate.