The four-week average of unemployment claims rises, reflecting an ongoing soft labor market.
The U.S. Labor Department announced today that the number of people filing for the
first time for unemployment benefits fell by 18,000 to 365,000 on a seasonally
adjusted basis in the week ended May 3.
Initial claims for unemployment insurance have been unusually volatile over the past
month and a half, jumping between 345,000 and 406,000.
The four-week average of initial jobless claims, which is a better indicator of the
situation because it smoothes out one-time factors such as bad weather or holidays,
increased by 2,500 to 367,500 -- reflecting the weak job market.
Even with the increase, the numbers also reveal a hopeful sign that the job cuts
during this recession will not be as strong as in the past -- with some employers
finding innovative solutions, such as cutting back hours, as an alternative to
firing staff.
