Jobless Claims Unexpectedly Rise
This morning, the Department of Labor announced that initial jobless claims rose 25,000 week-on-week to 471,000. Economists had expected claims to fall from
Jul 31, 2020385 Shares385.2K Views
This morning, the Department of Labor announcedthat initial jobless claims rose 25,000 week-on-week to 471,000. Economists had expectedclaims to fall from 444,000 to 440,000, continuing their slow decline. The 25,000 person increase is the largest in three months. The four-week average — which smooths week to week variation — climbed by 3,000 to 453,500.
The one-week statistic throws cold water on the idea of a fast-moving recovery. Employers are, on aggregate, adding new jobs. Last month, the unemployment rate ticked up from 9.7 to 9.9 percent, but only because more people re-entered or entered the workforce than employers could hire. And yesterday, the Federal Reserve released its April minutes, forecasting a brighter economic outlook. But unemployment and aggregate demand remain extraordinarily weak.
Hajra Shannon
Reviewer
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