US jobless claims rise further amid California hobble, but recovery trend stands firm

by   |  VIEW 1231

US jobless claims rise further amid California hobble, but recovery trend stands firm

On Thursday, US Labour Department said in a statement that the number of Americans filing for first-time state unemployment benefits rose again last week, as the US state of California shifted more people to an unemployment program that had expired earlier this month.

However, despite a drag in California, US labour market recovery remained well en-route, as unemployment had been gradually contracting over mid-September, the weekly initial jobless claims report from US Labour department had added.

US initial claims rise amid California shuffle

According to the US Labour Department, California had made a statement on September 17 saying that about 340,000 people under a PEUC (Pandemic Emergency Unemployment Compensation) program, which was expired earlier this month, had been shifted to Federal State Extended Duration Program, however, that program had also expired on September 11, eventually stepping up weekly initial jobless claims last week.

In tandem, few analysts were quoted saying that a rapid rise in delta cases might have stemmed a modest increase in claims, as some manufacturers had reportedly been laying off workers due to a lag in demand, however, a resurgence in delta cases seemingly subsided and led to a pickup in economic activity later this month.

According to US Labour Department data, the number of Americans filing for state unemployment benefits for the first time on their lives rose 11,000 to a seasonally adjusted 362,000 over the week that ended on September 25, missing out an analysts’ estimate of 335,000 applications and remarking a third straight week of increase in initial claims.

Claims in California rose 17,978 last week, while initial claims also had spurred up in the US state of Michigan and Texas significantly, however, the US states of Michigan, Maryland, Ohio, Louisiana and Arizona had reported large declines.

On an unadjusted basis, jobless claims dropped 8,326 to 298,255 last week. Meanwhile, adding that the increase in jobless claims were less venomous last week, a senior economist at Moody’s Analytics in West Chester, Pennsylvania, Ryan Sweet said, “The increase in initial claims is less concerning than it may appear. The rise in new filings in California could be capturing refiles”.