Economic IndicatorsTop News

U.S. Initial Jobless Claims Fall To 1.31M, Continuing Claims Just Above 18M

imageEconomic Indicators18 hours ago (Jul 09, 2020 08:25AM ET)

(C) Reuters.

By Peter Nurse – The number of Americans applying for initial unemployment benefits dropped to 1.314 million in the week ending July 3, the U.S. Labor Department said Thursday, a larger drop than expected but still underlining the view that the labor market faces a prolonged and difficult recovery from the Covid-19 pandemic.

The number was lower than forecasts for 1.375 million and down from 1.413 million in the prior week, a figure that was also revised lower.

This was received positively on Wall Street, with the benchmark S&P 500 futures contract turning just positive after early losses. At 8:50 AM ET (1250 GMT), the contract traded 6 points, or 0.2%, higher.

This marked the 16th straight week in which initial claims remained above 1 million, but the 14th week they have moved lower. Claims have pulled back from a record 6.86 million in late March, but the pace of decline has slowed.

The level of new layoffs continues to remain elevated, and the recent surge in Covid-19 infections has forced some states to roll back their reopening plans.

“Unfortunately we don’t expect to see meaningful declines from these huge numbers anytime soon,” said analysts at ING, in a research note. “High frequency data from Homebase suggest that employment gains are already plateauing as the spike in Covid-19 cases has led several states to announce renewed containment measures while other states delay their phased re-opening.”

Continuing claims, which show the number of people receiving benefits after an initial week of aid, came in slightly below expectations at 18.062 million in the week ended June 27, down just slightly from a revised 18.76 million a week earlier.

Continuing claims figures are reported with a one-week delay but are considered offering a better view of the labor market. Continuing claims initially eased from a record high of 24.91 million in early May but have ground lower since then.

U.S. Initial Jobless Claims Fall To 1.31M, Continuing Claims Just Above 18M

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Related Articles

Back to top button
Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!