US unemployment claims surged in the US during March and April, reaching to 6 million weekly and to around 40 million unemployed people. Jobless claims cooled off eventually, falling to 1.3 million in the second week of July. The decine was already slowing considerably in recent weeks, while today’s report showed that claims rose again last week.

This is not a good sign, showing that the recovery might be slowing or even flattening out in the US. New York FED’s Dudley is also worried about this and today’s number’s confirm his worries.

US initial jobless claims and continuing claims

• initial jobless claims 1416K vs 1300K estimate.  Prior week revised to 1307K from 1300K previously reported
• 4 week moving average for initial claims 1360.25 vs. 1376.75K last week
• continuing claims 16197K vs 17100K estimate. Last week 17304K vs 17338K previously reported
• 4 week moving average for continuing claims 16197K vs 17304K last week.