Initial jobless claims dropped to 391k in the week ending September 24 from an upward revised 428k the week prior. The 4-week moving average moderated to 417k from 422k.
The Labor Department suggested there is greater volatility than usual in jobless claims saying that technical factors mean that the decline should not be a big surprise in a week toward the end of a quarter with hurricane related paperwork leading to delays in processing. The analyst also said claims have been less in sync with seasonal norms this year owing to shifts in the Easter holiday and other factors. These comments are suggest we should continue to focus on the averages and the 4-week average has drifted up from a low of 403k to closer to 420k. These moves are not that meaningful and suggest overall ongoing weak labor market conditions. Meanwhile the Labor Department released its preliminary annual benchmark revision which suggested 192k more jobs were created between March 2010 and March 2011 than previously estimated. The additional jobs were primarily in trade, transportation and utilities, professional services, and government.
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