The DOL reports for the week ending July 25 unemployment claims rose by a seasonally adjusted 25,000 from the prior week.  On a non seasonally adjusted basis, claims declined by about 78,000.  The decline in unadjusted claims can, of course, be from people going on to extended EUC unemployment coverage rather than the “first line of defense”,  normal federal program – as opposed to those people finding a job…

States reported 2,656,879 persons claiming EUC (Emergency Unemployment Compensation) benefits for the week ending July 11, an increase of 24,518 from the prior week.

The above is the AP’s headline.  To be fair, AP acknowledges the number appears so good “largely due to changes in the timing of auto industry layoffs”.  Another contributing factor – one which everyone seems to be ignoring – is that last week included a holiday.  The numbers are supposed to be adjusted for the holiday, but, new claims are logically smaller during such holiday weeks.  See our own analysis of Easter week unemployment.