Initial Jobless Claims totaled 565k, much better than the consensus of 603k and it’s the first reading below 600k since Jan 23rd. The key factor in the lower than expected # has to do with the auto sector. Historically in July automakers normally shut down plants but because Chrysler and GM had plant shut downs over the past few months due to their bankruptcies and just restarted them, we aren’t going to see the seasonal July shutdowns, thus the claims data was skewed lower artificially. Continuing Claims rose 159k from last week, were 173k more than expected and rose to a new record high and is evidence that while some people’s claims are running out, more people are filing initially and still many are having a tough time finding new jobs that are still collecting.
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