Volatility is the word for it: First-time unemployment claims jump to 386,000

(The Maddow Blog) First-time unemployment claims jumped to 386,000 from last week's revised total of 352,000, the Department of Labor reports. Last week, first-time claims were initially reported at 350,000, the lowest since March 2008. However, analysts cautioned that the drop was likely a result, at least in part, of auto manufacturers not shutting down as many plants as they usually do at this time of year; seasonal adjustments to the jobless claims numbers were thrown off by that.

The four-week moving average, a measure preferred because it reduces volatility, was 375,500. This is a drop of 1,500 from the previous week's revised figure of 377,000. Volatility as a result of the auto industry's summer shutdowns, however reduced they are this year, is expected to continue making it difficult to suggest any trends in the labor market.

For all unemployment benefit programs, including federal emergency extensions, the total number of people claiming benefits for the week ending June 30 was 5,752,116, a decrease of 121,985 from the previous week. This number is dropping in part because people are exhausting their eligibility for weeks of benefits being reduced by Congress and some states.