US weekly jobless claims data released earlier on Thursday had largely coincided with the US Fed’s August FOMC minutes’ projection of a longer-term stagnation in the US labour market, as the number of laid off Americans filing for state unemployment benefits for the first time in their lives had inched lower last week, suggesting a steep slowdown in US labour market recovery, though weekly initial claims had fallen to the lowest level last week since hitting a record peak of 6.68 million late in March this year.
Aside from that, according to the US Labour Department data released earlier in the day, initial jobless claims for unemployment benefits fell marginally to a still stubbornly-high 840,000 on an adjusted basis for the week that ended on October 3, compared to a revised 849,000 in initial jobless claims reported for the week that ended on September 27, however, an analysts’ poll had forecasted 820,000 applications for state unemployment aids last week.
US initial weekly jobless claims stalls above a historically high
In point of fact, although the latest week’s initial jobless claims had been the lowest since March as beforementioned, the number of laid-off Americans had been hovering above a record high of 800,000 every week, while the previous peak of initial jobless claims had recorded 665,000 applications during the Great Financial Depression of 2007-2009.
Nonetheless, although the US weekly jobless claims appeared to have stalled over 800,000, suggesting risks of a plausible economic stagnation at large, analysts had expressed sheer discontent over the latest leg of weekly jobless claims data, since the US state of California that represents the world’s fifth-largest economy, had not been revealing its initial jobless claims data for the past two weeks due to an indication of fraud alongside a backlog in applications.
Meanwhile, pouring fresh scorns over the latest leg of weekly jobless claims, an economist at Indeed Hiring Lab wrote in a client note following the release of US Labour Department data, “With California pausing initial claims for two weeks, the change in initial claims ...
is a hollow metric. Headline number aside, the report points to a wounded economy that’s not in good shape for winter”.