Unemployment Insurance Claims Still Rising

May 24, 2001 (PLANSPONSOR.com) - Initial unemployment insurance claim figures were up sharply to 407,000 for the week ending May 19, 116,000 higher than the same period last year, according to numbers from the Department of Labor.

The level is 15,000 higher than the revised figure of 392,000 recorded in the previous week and higher than most analysts’ expectations, a Reuters poll of whom showed the consensus forecast at 388,000.

Last week’s un-revised data originally showed claims falling by 8,000 to 38,000, the error was reportedly caused by a computer problem that affected data sent to federal officials by one state.

The number of people remaining on unemployment rolls reached its highest level in over six years, rising to 2,772,000 in the week ended May 12 from 2,683,000 in the previous week and the highest since 2,784,000 in the June 11, 1994 week.

The more stable four-week moving average, a more closely watched economic indicator fell to 403,000, its lowest level in almost a month.