Tuesday, 02 June, 2020

US jobless claims remain high as backlogs, layoffs linger

Pennsylvania jobless rate hits 15.1% as payrolls collapse US weekly jobless claims expected to climb by 2.4 million despite easing of lockdown measures
Ginger Lawrence | 24 May, 2020, 03:23

New numbers from the U.S. Department of Labor found that Michigan's unemployment rate dropped to 22.6% last week, which was down from 23.1% two weeks ago. The jobless claims report, the most timely data on the economy's health, could offer early clues on how quickly businesses rehire workers as they reopen and on the success of the government's Paycheck Protection Program (PPP). That sent the insured unemployment rate, or the number of people now receiving unemployment insurance as a share of the total eligible labor market, to 17.2 per cent for that period.

Continuing claims under the PUA program totaled 6.12 million as of May 2.

"One bright spot, however, was the almost flat reading in continuing claims, which serves as a gauge of (1) how quickly the economy can ramp up after states "re-open" and (2) the efficacy of the PPP".

One potential silver lining in the figures: the majority of states reported a decline in continuing claims, a sign that reopenings are bringing people back to work in many parts of the country. Florida had 221,000 claims, California 214,000, and NY roughly 200,000.

"A couple of large states, Florida and NY, still had increases in their weekly claims, but the majority of states are seeing new claims fall by 20 percent per week", UBS said in a note dated May 15, seen by Yahoo Finance.

Monroe County Moves Into Governors Yellow Phase
Statewide there are now more than 66,000 positive cases reported and more than 312,000 negative tests. Two state senators representing the Lehigh Valley are calling on Gov.

Jobless claims have reached into the millions on a weekly basis since mid-March, underscoring the depth and breadth of job losses.

A separate report Thursday showed USA sales of previously owned homes fell in April by the most since mid-2010.

The number of jobless claims approached 19,000 for the last week of March and the first week of April.

The implementation of Pandemic Unemployment Assistance, or PUA, a federal program that provides benefits to self-employed people, contractors and other workers who are not typically eligible for unemployment assistance, has generated multiple claims from some people.