On October 8, the US Department of Labor had reported that 840,000 more workers had applied for unemployment benefits on a seasonally adjusted basis. It remained high even despite the delays in federal stimulus checks.
More Unemployment Benefits Filings
CNN Business reports that the figure dropped by 9,000 from the previous week. However, it turned higher than expectations from economists. Although the new benefits applications have significantly decreased, it remained higher compared to the worst weeks of previous recessions, the New York Times reports.
Unemployment Insurance Weekly Claims
Initial claims were 840,000 for the week ending 10/3 (-9,000).
Insured unemployment was 10,976,000 for the week ending 9/26 (-1,003,000).https://t.co/ys7Eg5LKAW
— US Labor Department (@USDOL) October 8, 2020
The improvement has paced slow amid the expiration of stimulus checks from the government. A new round of cash reliefs to the unemployed and struggling business seemed to remain distant. Actually, analysts have feared that without the stimulus checks, it could possibly result in higher layoffs and business closures.
In a CNN Business report, chief investment officer Peter Boockvar of the Bleakley Advisory Group hoped that the numbers in initial claims break below the 800k mark. He said that remaining in the 800k and above mark would not be good, especially as winter approaches.
But the report does not paint the entire picture. Last month, California said that it halted listing new jobless claims filing. So the Department of Labor just assumes the figure for the state as the same before it ceased accepting new filings. But even without the updated data from California, the New York Times noted that the economic recovery evidently slows down, with millions remaining jobless.
On the other hand, the number of people who sought jobless claims for two weeks or more in a row has decreased. CNN reports that it even surpassed what the economists had expected. The continued claims fell by one million to 11 million. However, a chief economist reckons that this also indicates those claimants who lose eligibility.