Jobless Claims: Swift Correction

Bottom Line:  Claims corrected sharply lower after a surprise increase in the prior week. Claims in Massachusetts accounted for nearly all of the volatility amid reports of a spike in fraudulent claims and a subsequent state investigation. Claims still remain modestly higher than the long-term average and in a slight uptrend, suggesting a very slow slackening in a historically very tight labor market. Continuing claims have also started to lose upward momentum, furthering the notion that the slackening will be very slow.Initial Jobless Claims FELL -22k in the week ended May 13th to 242k, BELOW the 4-week average of 244.25k, ABOVE the 13-week average of 238.23077k but 20k ABOVE the year-ago level. Non-seasonally adjusted Claims FELL -18.605k.

Continuing Claims FELL -8k in the week ended May 6th to 1.799M, BELOW the 4-week average of 1.8125M, ABOVE the 13-week average of 1.795692M but 365k ABOVE the year-ago level.