Weekly Unemployment Claims: Up 37K

Here is the opening statement from the Department of Labor:

SEASONALLY ADJUSTED DATA

In the week ending June 12, the advance figure for seasonally adjusted initial claims was 412,000, an increase of 37,000 from the previous week's revised level. The previous week's level was revised down by 1,000 from 376,000 to 375,000. The 4-week moving average was 395,000, a decrease of 8,000 from the previous week's revised average. This is the lowest level for this average since March 14, 2020 when it was 225,500. The previous week's average was revised up by 500 from 402,500 to 403,000.

The advance seasonally adjusted insured unemployment rate was 2.5 percent for the week ending June 5, unchanged from the previous week's unrevised rate. The advance number for seasonally adjusted insured nemployment during the week ending June 5 was 3,518,000, an increase of 1,000 from the previous week's revised level. The previous week's level was revised up 18,000 from 3,499,000 to 3,517,000. The 4-week moving average was 3,603,750, a decrease of 55,000 from the previous week's revised average. This is the lowest level for this average since March 21, 2020 when it was 2,071,750. The previous week's average was revised up by 7,500 from 3,651,250 to 3,658,750. [See full report]

This morning's seasonally adjusted 412K new claims, up 37K from the previous week's revised figure, was worse than the Investing.com forecast of 359K.

Here is a close look at the data over the decade (with a callout for the past year), which gives a clearer sense of the overall trend.

As we can see, there's a good bit of volatility in this indicator, which is why the 4-week moving average (the highlighted number) is a more useful number than the weekly data. Here is the complete data series.

The headline Unemployment Insurance data is seasonally adjusted. What does the non-seasonally adjusted data look like? See the chart below, which clearly shows the extreme volatility of the non-adjusted data (the red dots). The 4-week MA gives an indication of the recurring pattern of seasonal change (note, for example, those regular January spikes).

Because of the extreme volatility of the non-adjusted weekly data, we can add a 52-week moving average to give a better sense of the secular trends. The chart below also has a linear regression through the data.

Here's a look at each year's claims going back to 2009.

For an analysis of unemployment claims as a percent of the labor force, see this regularly updated piece The Civilian Labor Force, Unemployment Claims, and the Business Cycle. Here is a snapshot from that analysis.