US initial claims falls by 60k to 1.48m although California experiences a surgeOn June 25, 2020 by Thomas Belayneh
Data released at 08:30(EST) by the US Department of Labor showed new unemployment claims were 1.48m in the week ending 20th June. Despite these new claims, continuing unemployment claims fell by 767,000 to 19,522,000, marking a slow but steady return to work for Americans.
This week’s new unemployment claims declined by 60,000 on last week’s figure although it still remains elevated by historical standards. During the same period last year, only 224,000 Americans filed which illustrates how turbulent the current times are.
Nationwide, the seasonally adjusted insured unemployment rate fell 0.5% to 13.4% for the week ending 13th June, although unemployment rates remained high in key states such as California and New York.
The fourth and fifth highest unemployment rates for the US fall in the states of New York and California respectively with 17% and 17.3%. Of these two states, however, California stands out.
Unadjusted initial claims in California for the week ending 20th June stood at 287,354, which represented an increase of 45,930 on the prior week period – the highest of all US states. This was in stark contrast to the initial claims figure of the week ending 13th June that actually showed a decline of 14,412 on the week ending 6th June.
This implies a worsening employment situation in California despite the recent positive news regarding nationwide picture.
California’s continuing claims, however, saw a decline of 188,469 from 3m to 2.8m for the week ending 13th June, which may seem like good news on first glance, but compared to the 188,929 rise for the week ending 6th June means it’s certainly nothing to cheer.
The largest decrease in initial claims was in Oklahoma where it fell by 35,571 to 49,208 claims, although continuing claims rose slightly by 5,613 to 178,974. This likely reflects recovering activity in mining and manufacturing, which are among the top five employment sectors in the state.
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