Unemployment Claims Fall Below Critical 400,000 Mark

Little change in the number of first-time filers

The number of first-time filers for unemployment benefits fell in the week ending August 6 to 395,000, a decrease of 7,000 from the previous week’s revised figure of 402,000.

This number indicates continuing sluggishness in the job market. The 4-week moving average also fell to 405,000, a decrease of 3,250 from the previous week’s revised average of 408,250.

The advance seasonally adjusted insured unemployment rate was 2.8% for the week ending July 30, a decrease from the prior week’s revised rate of 2.9%.

Continuing claims – which include people filing for the second week of benefits or more during the week ending July 23 was 3,688,000, an increase of 60,000 from the preceding week’s revised level of 3,748,000.

The 4-week moving average was 3,718,750, an increase of 15,250 from the preceding week’s revised average of 3,734,000.

At any other time, these numbers would be cause for slight optimism about the state of the economy.  However, given the toxic political environment, we cannot be so sanguine.

Future unemployment and housing statistics will provide more information in coming weeks about how lasting this recovery is.