Labour market recovery progresses as continuing jobless claims collapses by over 1mOn July 23, 2020 by Thomas Belayneh
Economists and analysts had been expecting this week’s initial jobless claims figure to remain the same as last week’s 1.3m, however, today’s jump to 1,416,000 missed by a wide margin.
The initial claims data adds to pressure on legislators to pass a new stimulus package ahead of the summer recess, so as to ensure the nascent economic recovery remains on track.
The level of initial jobless claims was revised up for the prior week period (ending 11th July) by 7,000 to 1,307,000, although the insured unemployment rate fell a healthy 0.7% to 11.1%.
The defining feature of the data was therefore the number of continuing jobless claims, which fell by 1,107,000 to 16,197,000 for the week ending 11th July. The fall in continuing claims exceeded the 454,000 decrease in continuing claims for the week ending 4th July which suggests an acceleration of the number of people returning to work.
Driving the fall in continuing jobless claims were the gargantuan reductions in claimants for unemployment benefits in the states of Florida, California and Pennsylvania – these were 222,915, 217,526 and 141,130, respectively, and represented top three largest falls of all US states.
The big falls in continuing claims were enough to offset the new claims filed in Florida and Pennsylvania (105,410 and 37,238 respectively) but not enough in California where 292,673 filed initial claims for unemployment insurance for the week ending 18th July.
Washington and Mississippi were not as fortunate, however, as both states saw the largest increases in continuing jobless claims of all US states – 61,062 and 53,348, respectively – in the week ending 11th July. There were further jobless claims in the week ending 18th July with 34,639 filing in Washington and 11,718 in Mississippi.
This site uses Akismet to reduce spam. Learn how your comment data is processed.