Initial jobless claims fall from 130,000 to 881,000, but are tied to changes in statistical method

Numbers: The number of new applications for unemployment benefits fell sharply last week as a new epidemic fell, but the overall decline stemmed from a major change in how data is reported rather than a large increase in people searching for jobs. There was no progress in the labor market without change.
The Labor Department said on Thursday that initial unemployment claims fell to 130,000 in the last week of August, to a seasonally adjusted 881,000. These figures reflect traditionally filed applications through state unemployment offices.

Economists provided by MarketWatch estimated 940,000 new claims in the seven days ending August 7. Yet not all estimates took into account changes in the government’s formula for seasonal adjustment.
The Bureau of Labor Statistics said that its adjustment process would be changed to make this report more accurate last week. The level of seasonally adjusted new claims has gone significantly higher than the actual or actual ones applying for benefits each week, a problem that became more apparent in the previous month.

For a fuller explanation, read about the major change in jobless claims
The unreasonable or actual number of new unemployed claims, meanwhile, suggested how many people have applied for benefits in the past week. They increased slightly from 825,761 to 833,352. This was the fifth straight week in which unauthorized claims were less than 1 million.
By any measure, however, jobless claims are still very high. They ran into the low 200,000 and stood close to a half-century shortly before the outbreak of the coronovirus epidemic.
other than this: Did the terminated $ 600 federal unemployed benefit prevent people from going back to work?
What happened: California (40,000) had the largest increase in new jobless claims, with small increases in Texas and Louisiana. In particular they fell in Florida and Georgia, stating that there was a large increase in coronovirus cases in the summer.
Adding in the self-employed workers, who filed under a separate federal program, actual or unreasonable new claims last week totaled 1.59 million. It has increased by 1.43 million in the first week.
The continuation of unemployed claims, or the number of people already receiving benefits, adjusted to 13.25 million from 14.49 million in the week of 22 August. The raw or actual number was somewhat less.
Overall, the number of people receiving benefits through eight state and federal programs increased to 29.2 million from a week earlier to 29 August. The data has been released with a delay of two weeks.
Read: ADP says private sector has reduced expectations for 428,000 new jobs in August
big picture: The large wave of people returning to work at the beginning of summer appears to have faded more in a move, which makes it difficult for the economy to recover.
Some companies are permanently laying off more workers or warning that they can do so until the sale is done soon or the government comes to their rescue again.
Read:The economy softened in August as some temporary layoffs became permanent.
The difference of another government financial bailout will not be favorable soon. An additional $ 600 in weekly federal benefits for the unemployed ran in late July and a program that paid small businesses to keep employees on their payroll, even after Democrats and Republicans failed to agree on another aid package Missed it. Neither side has done much recently.
What are they saying “The data suggests layoffs remain widespread and recovery in the labor market is disappointing at a slow pace,” said American economist Nancy Vanden Houghton of Oxford Economics.
Market reaction: Dow Jones Industrial Average DJIA,
And the S&P 500 SPX,
Thursday was set to open mixed in trades.


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