US Unemployment Claims Soften, But Disappoint Once Again
The US jobless claims declined last week, but missed expectations again
Skerdian Meta•Thursday, June 25, 2020•1 min read
The US unemployment rate jumped higher to around 17% in April, but many economists predicted that it could be as high as 20%, due to the coronavirus lock-downs. They have been declining during the last several weeks, but the decline has been slower than expectations. Economist were hoping for a V-shape recovery, but unlike in other sectors, employment will take time to get back where it was pre-Covid19, after all sectors have settled and employers actively seeks workers.
So, while the jump in unemployment numbers was steep in March and April, the decline has taken a curve, as jobless claims cool but not by much. Below is the US unemployment claims report for last week:
US Unemployment Claims by the Department of Labor – 25 June 2020
- Initial jobless claims w.e. 20 June 1,480K vs 1,320K expected
- 1,508K; revised to 1,540K
- Continuing claims w.e. 13 June 19,522K vs 20,000K expected
- Prior 20,544K; revised to 20,289K
- Pandemic unemployment assistance 11.05m vs 9.37m prior
- 4-week moving average 1,621K
- Prior 1,782K
The headline is higher than expected but still shows a decline compared to the previous week though continuing claims actually fell back under 20 million in the latest update here.The insured unemployment rate was 13.4%, also a slight decrease of 0.5% from the previous week but all in all, it still isn’t a pretty picture relative to what the monthly labour market report suggests in general about the job situation in the US.
I mean this is pretty much the third month of weekly initial jobless claims still coming in well above the 1 million mark, so there’s that to consider even if the trend is getting better. When you add the PUC claims and other extended benefits, there are 30.553m Americans out of work compared to 29.259 a week earlier.
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Skerdian Meta
Lead Analyst
Skerdian Meta Lead Analyst.
Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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