Initial jobless claims tumbled to 787K last week and offer a more accurate picture of the labor market now that California’s processing pause has ended. While claims are improving again on trend, they remain elevated.
A Somewhat Clearer Picture This Week
Initial claims for jobless benefits fell sharply the week ending Oct. 17, while the previous week’s figures were revised down 56K. The revisions and sizeable drop comes as California has completed its processing pause, with the national figures no longer holding the most populous state’s figures constant.
The trend in initial claims has resumed its gradual descent, but filings remain extraordinarily high seven months into the crisis.
On Net, Continuing Claims Edging Down
Continuing claims fell 1.0M, but the drop comes as workers are exhausting those benefits. Recipients of extended benefits under the PEUC program rose 510K the week ending Oct. 3.
Today’s report overlaps with the October payroll report survey week. Since the September survey week, initial claims have fallen 79K and suggest the labor market’s recovery remains intact, but the pace continues to slow.
