Thursday, June 11, 2020

Weekly Initial Unemployment Claims decrease to 1,542,000

by Calculated Risk on 6/11/2020 08:37:00 AM

The DOL reported:

In the week ending June 6, the advance figure for seasonally adjusted initial claims was 1,542,000, a decrease of 355,000 from the previous week's revised level. The previous week's level was revised up by 20,000 from 1,877,000 to 1,897,000. The 4-week moving average was 2,002,000, a decrease of 286,250 from the previous week's revised average. The previous week's average was revised up by 4,250 from 2,284,000 to 2,288,250.
emphasis added
The previous week was revised up.

This does not include the 623,073 initial claims for Pandemic Unemployment Assistance (PUA).

The following graph shows the 4-week moving average of weekly claims since 1971.

Click on graph for larger image.

The dashed line on the graph is the current 4-week average. The four-week average of weekly unemployment claims decreased to 2,002,000.

This was higher than the consensus forecast of 1.2 million initial claims.

The second graph shows seasonally adjust continued claims since 1967 (lags initial by one week while increasing sharply).

At the worst of the Great Recession, continued claims peaked at 6.635 million, but then steadily declined.

Continued claims have already decreased to 20,929,000 (SA) from 21,268,000 (SA) last week and will likely stay at a high level until the crisis abates.

Note: There are an additional 9,715,948 receiving Pandemic Unemployment Assistance (PUA). This is a special program for business owners, self-employed, independent contractors or gig workers not receiving other unemployment insurance.