New unemployment claims for this week are still stubbornly high at just below 1.5 million. The good news is that it was somewhat offset by people not needing unemployment claims any longer:
CNBC – Jobless claims totaled 1.48 million last week as unemployment related to the coronavirus pandemic remained stubbornly high, though those receiving benefits fell below 20 million for the first time in two months.
Economists surveyed by Dow Jones had been expecting 1.35 million claims.
While the weekly numbers remained high and were worse than Wall Street estimates for the second straight week, the total of those receiving benefits continued to fall. Total recipients, or continuing claims, fell by 767,000 to 19.52 million.
“Initial and continuing claims point to gradual improvement in the labor market. Falling initial claims signal that the pace of layoffs is slowing, but it still extremely high,” said Gus Faucher, chief economist at PNC Financial.
The unexpectedly high number comes as all 50 states have reopened following a shutdown that began in mid-March. Rising cases across various states has prompted some governors to reconsider the relaxed policies.
It may be true that all 50 states have reopened, but they all haven’t completely reopened. Here in North Carolina we’re still in the half-capacity phase 2 and we’re going to be in it for three more weeks. I suspect that’s the case in many states.
It’s also being reported this morning that the economy shrank 5% thanks to the pandemic shutdown, which is to be expected:
The U.S. economy shrank at a 5.0% rate in the first quarter with a much worse decline expected in the current three-month economic period because of the coronavirus pandemic. https://t.co/pLkti5lE2C
— The Associated Press (@AP) June 25, 2020