Initial jobless claims remain stubbornly elevated, which implies persistent weakness in the domestic labor market as the economy absorbs further intensification of the coronavirus pandemic. This may cause further volatility in these numbers in the coming weeks.
The cumulative total of initial claims over the past 17 weeks has reached 51.3 million.
First-time jobless claims for the week ending July 11 increased by 1.3 million, bringing the cumulative total of initial claims over the past 17 weeks to 51.3 million, according to Labor Department data released on Thursday. It is the 17th straight week that initial claims have increased by more than 1 million. Once one accounts for Pandemic Unemployment Assistance, claims increased by 2.2 million.
Through the week of June 27, the total number of people on some form of unemployment assistance declined to 32 million, from 32.4 million previously. Through the week of July 4, there were 17.3 million people filing continuing claims, which implies an insured unemployment rate of 11.9%.
It is highly likely that various forms of unemployment insurance will expire in the coming days, so forward-looking investors should anticipate sustained initial claims data, with more than 30 million Americans remaining on some form of aid in the near term.
For more information on how the coronavirus is affecting midsize businesses, please visit the RSM Coronavirus Resource Center.
