Jobless claims bounce up
Initial unemployment filings jump to 554,000, up 30,000 from prior week but slightly lower than estimates. Continuing claims fall.
NEW YORK (CNNMoney.com) -- The number of Americans filing for initial unemployment insurance rose last week, but the jump could be due to continued volatility from the auto industry meltdown.
There were 554,000 initial jobless claims filed in the week ended July 18, up 30,000 from an upwardly-revised 524,000 the previous week, the Labor Department said in a weekly report released Thursday.
The number was slightly lower than the 557,000 consensus estimate of economists surveyed by Briefing.com.
The 4-week moving average of initial claims was 566,000, down 19,000 from the previous week's revised average of 585,000.
In a research note, Ian Shepherdson of High Frequency Economics noted the jump "reflects the seasonal adjustment problems" seen last week when initial claims hit a 6-month low.
Last Thursday, the Labor Department warned that in their adjustments, government statisticians try to predict the timing of auto industry layoffs -- many of which usually occur in the first two weeks of July. But this year, many of those layoffs occurred earlier.
"Hence, seasonally adjusted claims plunged," Shepherdson wrote. "Now this effect is reversing."
Shepherdson said he expected "another hefty rise in claims next week," with total initial claims rising back above 600,000 before stabilizing over the next few weeks.
Continuing claims: The government said 6,225,000 people filed continuing claims in the week ended July 11, the most recent data available. That's down 88,000 from the preceding week's revised 6,313,000 claims.
The 4-week moving average for ongoing claims fell to 6,541,500, down 132,500 from the preceding week's revised average of 6,674,000.
The initial claims number identifies those filing for their first week of unemployment benefits. Continuing claims reflect people filing each week after their initial claim until the end of their standard benefits, which usually last 26 weeks.
The figures do not include those who have moved to state or federal extensions, nor people whose benefits have expired.
State-by-state data: Six states reported initial claims fell by more than 1,000 in the week ended July 11, the most recent data available. Michigan's claims fell the most, by 6,648.
Conversely, 23 states reported claims increased by more than 1,000. New York reported the most new claims, at 12,504, which the state said was due to layoffs in the construction, service and transportation industries. 
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