Jobless Claims Came in Higher Than Expected This Morning, Grim News for Economy
The number of Americans applying for unemployment insurance last week jumped to its highest level since mid-August, according to CNBC.
898,000 new claims for unemployment insurance were filed last week beating the 830,000 estimate economists surveyed by Dow Jones had forecasted. This number of claims is the highest since August 22 and proves that the economy is still struggling and has the potential to regress. Last week's jobless claims report came in at 845,000.
On the bright side, the number of individuals who have been receiving unemployment benefits consistently fell significantly. The continuing claims tracker lags a week behind unemployment claims, but reported a decrease of 1.165 million, leaving the number of individuals consistently receiving benefits to around 10 million. The economy has been able to recover around half of the jobs that the pandemic eliminated and the unemployment rate has fallen to 7.9 percent.
The insured unemployment rate, which measures those receiving benefits against the total labor force, fell 0.9 percentage points to 6.8 percent. Reporting of claims has been skewed by California's incompetence. The state halted the processing of its claims as it attempts to clean up its systems. The Labor Department has been forced to use a fixed number of 225,000 to account for the state's unemployment.