Spike in coronavirus cases led to states implementing new restrictions.
The unemployment claims last week went up slightly to 1.416 million.
However, continuing claims decreased. That means the unemployment went down a little bit to 11.1%. You need to remember that these numbers lag behind a week.
From the Labor Department:
In the week ending July 18, the advance figure for seasonally adjusted initial claims was 1,416,000, an increase of 109,000 from the previous week’s revised level. The previous week’s level was revised up by 7,000 from 1,300,000 to 1,307,000. The 4-week moving average was 1,360,250, a decrease of 16,500 from the previous week’s revised average. The previous week’s average was revised up by 1,750 from 1,375,000 to 1,376,750.
The advance seasonally adjusted insured unemployment rate was 11.1 percent for the week ending July 11, a decrease of 0.7 percentage point from the previous week’s revised rate. The previous week’s rate was revised down by 0.1 from 11.9 to 11.8 percent. The advance number for seasonally adjusted insured unemployment during the week ending July 11 was 16,197,000, a decrease of 1,107,000 from the previous week’s revised level. The previous week’s level was revised down by 34,000 from 17,338,000 to 17,304,000. The 4-week moving average was 17,505,250, a decrease of 758,500 from the previous week’s revised average. The previous week’s average was revised down by 8,500 from 18,272,250 to 18,263,750.
The new claim number is not a surprise. America has seen a rise in coronavirus cases so “states imposed new restrictions on businesses such as bars and restaurants when coronavirus cases rose.”
From The Wall Street Journal:
The level of claims indicates many workers are being laid off, perhaps for a second time, and that parents who want to work are unable to access child care, she said.
Other data also shows an easing in demand for labor. Job openings in July are down from June across the U.S., and Google searches for “file for unemployment” are creeping up. Growth in worker hours is waning at small businesses after several weeks of gains.
California is among the states that imposed new restrictions to deal with a surge in cases of the new coronavirus. The latest restrictions caused Jessica Jenkins, a 30-year-old hair stylist, to lose her job last week for the second time this year.
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