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Jobless claims edge lower to 837,000 as slow recovery continues

TamilM by TamilM
October 20, 2020
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KEY POINTS

  • First-time jobless claims totaled 837,000 last week, a decline of 36,000 from the week before.
  • Economists surveyed by Dow Jones had been looking for 850,000.
  • Continuing claims fell by nearly 1 million to 11.8 million.

First-time claims for unemployment insurance totaled 837,000 last week, the Labor Department said Thursday as the jobs market continues its plodding recovery from the coronavirus pandemic.

Economists surveyed by Dow Jones had been expecting 850,000. The weekly total represented a decline of 36,000 from the previous week’s upwardly revised 870,000, according to seasonally adjusted numbers.

Chart showing initial unemployment claims, weekly in 2020 through September 26.

This was the fifth consecutive week that claims were under 1 million after staying there for five months following the Covid-19-related economic shutdown in mid-March. However, the total is still well above anything the U.S. has seen since before the crisis.

Continuing claims provided some better news, with those collecting benefits for at least two weeks falling by 980,000 to 11.77 million. The continuing claims number runs a week behind.

Chart showing continuing unemployment claims, weekly in 2020 through September 19.

However, the overall trend remains stubbornly high, with the four-week moving average of first-time claims edging lower by just 11,750 to 867,250. Prior to the pandemic, weekly claims had been around 200,000.

Those collecting benefits under the Pandemic Unemployment Assistance program edged higher to 650,120. The program provides payments to those not normally eligible for benefits, such as freelancers and independent contractors.

The total for all those collecting benefits under the various government programs rose by nearly half a million to 25.53 million for the week ended Sept. 12.

More than two-thirds of individual states reported declines last week, according to unadjusted data. The biggest drops came from Florida, with 9,668, and Texas, with 8,353.

The claims number comes a day before the closely watched nonfarm payrolls report. The Labor Department is expected to report a jobs gain of 800,000 for September, which would represent a slowdown from August’s 1.37%, according to Dow Jones.

The unemployment rate is forecast to tick down two-tenths of a percentage point to 8.2%.

Copied From : https://www.cnbc.com

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