Thursday, July 9, 2009
Weekly Jobless Claims: Take Note of Seasonal Factors
Initial jobless claims fell below 600,000 for the first time since late January. This came in lower than most estimates. Continuing claims resumed their upward climb, eclipsing 6.8 million in this week's report.
It is worth noting that the seasonal factors for the next 2 weeks (this week's report as well) are considerably different from the last few weeks. In fact, if the same factor from last week as used in this week's report, the initial claims figure would have been 637,000!
This is one of the major reasons why one week's worth of data is of nominal importance.
The below link will bring you to the whole report: