Applications for unemployment benefits in the U.S. fell less than forecast last week, showing only gradual improvement from the worst of the pandemic-related layoffs even as states reopen more of their economies.
“The employment data are very unconvincing, it’s one of the things causing the markets to stall,” said
A separate report Thursday showed manufacturing in the Philadelphia region unexpectedly expanded in June. The Federal Reserve Bank of Philadelphia’s index of general
U.S. stocks recovered from early losses while the 10-year Treasury note was little changed approaching midday.
By several metrics, the economy has rebounded at a faster pace than many anticipated. Payrolls at companies increased by several million in May and consumer spending on cars, restaurant meals and more soared last month, exceeding expectations as states loosened restrictions. But the jobless claims data remain a glaring blemish that shows churn and volatility in a labor market that entered the year in solid shape.
The number of Americans applying for jobless benefits exceeded the 1.29 million median estimate in a Bloomberg survey of economists for the latest week, which coincides with the survey period for the monthly employment report.
The labor market recovery “is going to be a long recovery, and today was a reminder that it’s not going to improve every week in a straight line,” said
Given the unprecedented surge of claims in recent months, many economists look to the non-seasonally adjusted figures for a more accurate read on claims. Unadjusted continuing claims actually climbed by almost 26,000 to 18.7 million, boosted by an almost quarter-million jump in California from the previous week. Unadjusted initial claims dropped by more than 128,000 last week.
In addition to California, unadjusted continuing claims rose almost 110,000 in Texas and Oregon saw a more than 144,000 jump.
In the week ended June 13, states reported 760,526 initial claims for
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