WASHINGTON (MarketWatch) -- Continuing jobless claims fell by 148,000 to 6.68 million during the week ending June 6, the Labor Department reported Thursday. It was the lowest since May 9. Initial claims, meanwhile, rose by 3,000 to 608,000. The four-week average of continuing claims rose by 2,250 to 6.75 million. The insured unemployment rate -- the proportion of insured workers who are collecting benefits -- fell to 5.0%, down 0.1 percentage point.
I attribute this to the fire sale of inventories and some reordering taking place by retailers as they have trimmed their operations back severely, and consumers capitalized on heavy discounting. Watch this index dip deeply again when that process resolves itself, and those employers (especially retailers) who kept staff on during this process terminate many employees - which should start to show up in the June and/or July numbers, which will drive initial claims much higher. The key phrase here: The number of people on unemployment insurance rolls fell for the first time since early January, while first-time claims for benefits rose slightly.
Why is this phrase so key? If total jobless claims fell yet first time claims rose, that just means that more people went BACK to work than got laid off. Net result is more people working. Am I wrong?
True. Out of curiosity, how long can one claim UI benefits in the USA? Or is it different for each state? In Canada we can claim for 52-60 weeks depending on a few different factors.
I think it's usually 26 weeks + high rate states can extend 13-20 weeks. timing for this 'total drop' effect sounds about right
I think in the US unemployment benefits end sooner. But then the welfare benefits kick in for some. It's not so bad though as much of the population is well prepared with enough fat around their gut to last them for months after!
LOL we are not far behind up here. With the exception of myself who eats fast food on a daily basis and can't gain a single pound.
add to it some states are so backlogged with applicants that it'll take at least a month or two to get through and approved...and there's some more timing involved there.