The U.S. Department of Labor reports a 110,000 increase in UI claims last week, again taking claims filings over 1 million.
In the week ending August 15, the advance figure for seasonally adjusted initial claims was 1,106,000, an increase of 135,000 from the previous week’s revised level. The previous week’s level was revised up by 8,000 from 963,000 to 971,000. The 4-week moving average was 1,175,750, a decrease of 79,000 from the previous week’s revised average. The previous week’s average was revised up by 2,000 from 1,252,750 to 1,254,750.
The advance seasonally adjusted insured unemployment rate was 10.2 percent for the week ending August 8, a decrease of 0.4 percentage point from the previous week’s unrevised rate.
Calculated Risk adds,
This does not include the 542,797 initial claims for Pandemic Unemployment Assistance (PUA) that was up from 489,639 the previous week.
A little more perspective from the Associated Press.
The number of laid-off workers seeking U.S. unemployment benefits rose to 1.1 million last week after two weeks of declines, evidence that many employers are still slashing jobs as the coronavirus bedevils the U.S. economy.
The latest figures, released Thursday by the Labor Department, suggest that more than five months after the viral outbreak erupted the economy is still weak, despite recent gains as some businesses reopen and some sectors like housing and manufacturing have rebounded. Jobless claims had fallen last week below 1 million for the first time since March, to 971,000. A rising number of people who have lost jobs say they consider their loss to be permanent.
We all waiting for news of a sustainable recovery. These numbers remind us that the course of the pandemic remains unpredictable. As we saw earlier this week, with the better-than-anticipated revenue collections, there are positive indicators. The AP continues,
The continuing stream of layoffs comes against the backdrop of a modest recovery from a deep recession and a virus that is still paralyzing much of the economy. Home construction and sales have bounced back. So have auto purchases. But spending on travel, entertainment and many other services remains weak. Small businesses are struggling. And unemployment, at 10.2%, remains elevated.
More Americans are eating at restaurants, but the level of seated dining is still 54% below pre-pandemic levels, according to OpenTable. And though some employers are hiring, economists suspect that the pace is weakening.
Cautious optimism.
