WASHINGTON (MktNews) - Initial claims for U.S. state unemployment benefits fell sharply in the week ending July 21, shedding 51,000 to 366,000, the Labor Department reported Thursday, but offered no direct explanation.
The decline marked a four-month low and might be attributed to the typical summer period of volatility in initial claims resulting from auto plant shutdowns for retooling and worker recalls, a Labor Department analyst said.
The sharp downward swing is "not unusual," the analyst said, citing typically "large volumes" of worker movement in the summer. There was "no explanation" for this week's drop, the analyst said, but added that the move may be linked to seasonal adjustment issues.
The new initial claims level was well below the consensus forecast from a Market News International survey, which had centered on a decrease of 4,000 to 410,000, with a range of 389,000 to 424,000.
The Labor Department analyst suggested that the four-week moving average for claims might be a more accurate indicator at this time of year. That figure fell 6,250 to 409,000 for the week of July 21.
Last week, initial claims were down 32,000 to 417,000, revised from the down 35,000 to 414,000 originally reported.
Continuing claims slipped 17,000 to 3.087 million in the July 14 week. Reporting in this area lags initial claims by one week.
A comparison of employment survey weeks show continuing claims 112,000 higher than the level of 2.975 million in the June 16 week.
The seasonally adjusted rate of insured unemployment was unchanged at 2.4% in the July 14 week.