Continuing Jobless Claims Head Higher Again

Initial jobless claims fell for the third week in a row after hitting a four year high earlier this month after new extended benefits eligibility increased demand over the summer. Actual new claims fell to 425k, with the four week everage remaining elevated at 440k. This compares with a year-to-date average of 375k. A year ago, initial claims stood at 332k. Clearly, the slowing employment market is raising joblessness. Continuing claims continue to rise to a new high of 3.423 million, an increase of 64k from last week, and up 850k from a year ago, as the insured unemployment rate eased up a tenth to 2.6%.