Unemployed claims as low as 837,000 in slow recovery

The first claim for unemployment insurance was 837,000 last week, with the Labor Department saying Thursday that the jobs market continues to recover from the coronovirus epidemic.

Economists were expected to have 850,000 surveyed by Dow Jones. According to the seasonally adjusted numbers, the weekly total was revised downward from the previous week’s 36,000 to 870,000.

It was the fifth consecutive week that claims had been less than 1 million after staying there for five months after the Kovid-19-related economic bandh in mid-March. However, the total is still above anything the US has seen before the crisis.

Continued claims provided some better news, with profit falling from 980,000 to 11.77 million for at least two weeks. The issued claim number goes back a week.

While the trend overall remains fairly high, with the four-week moving average, the first-time claims reduced from an average of only 11,750 to 867,250. Before the epidemic, weekly claims were around 200,000.

In addition, the Labor Department said the number of jobs by California is somewhat distorted, as it is two weeks away from processing claims.

Benefit givers gained more than 650,120 under the Pandemic Unemployment Assistance Program. The program provides payments to those who are not normally eligible for benefits, such as freelancers and independent contractors.

The total for all people receiving benefits under various government programs increased from about half a million to 25.53 million for the week ended 12 September.

According to unofficial figures, more than two-thirds of individual states reported a decline last week. The largest drops came from Florida with 9,668 and Texas with 8,353.

The number of claims closely follows the nonfarm payroll report seen a day earlier. The Labor Department expects to secure a job of 800,000 for September, which according to Dow Jones would represent a slowdown from August’s 1.37%.

The unemployment rate is projected to reduce two-tenths of a percent to 8.2%.


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