Almost every state had a decline in initial jobless claims in the last week of May, as a ninth week was added to the trend of decreasing yet still substantial household economic misery.
California and Florida were the only two states reporting significant increases in first-time filings for unemployment benefits.
California and Florida were the only two states reporting significant increases in first-time filings for unemployment benefits for the week ending May 30, according to the Labor Department report released Thursday.
The extent of the economic damage from the coronavirus remains substantial no matter how big the decline in initial claims. California, which averaged 47,000 claims each week before the virus, processed 230,000 claims in the last week of May. Florida, which averages 9,000 claims per week during normal times, processed 206,000 claims.
There are now 12 states that have processed at least 1 million initial claims and 14 others with at least a half million total initial jobless claims filed since the coronavirus outbreak shut down work in most states.
Though the volume of new claims is decreasing, the cumulative impact of the number of out-of-work employees on state budgets and local economies is likely to be staggering for an indefinite period of time. Supporting the states through this crisis will be a monumental task.
The map below shows three numbers below the state name:
- The cumulative number of initial unemployment claims since March 7, the week before the effect of shutdowns began in earnest.
- The latest increase (decrease) in the number of claims.
- The Z-score of the latest increase (decrease) in claims, which is the number of standard deviations above (below) the pre-coronavirus average.
The first number indicates the depth of the impact of the virus on the labor force.
The second number indicates the direction of the claims (i.e., a first derivative of sorts): positive numbers indicate an increase in claims and labor market distress; positive numbers approaching zero indicate the deceleration in new filings; zero would suggest a plateauing of claims; while negative numbers are an indication that businesses and employees are returning toward normal levels of claims. Negative changes in claims should be viewed relative to the cumulative number of claims.
The third number shows the degree of the shock, with Z-scores outside the range of plus-or-minus two standard deviations considered to be outside of normal occurrences.
For more information on how the coronavirus is affecting midsize businesses, please visit the RSM Coronavirus Resource Center.
