The weekly jobless claims report showed a larger than expected decline in initial and continuing claims. Initial jobless claims tumbled to 787K last week and offer a more accurate picture of the labor market now that California’s processing pause has ended, expressed Wells Fargo’s analysts. They warn that claims remain elevated.
Key Quotes:
“The revisions and sizeable drop comes as California has completed its processing pause, with the national figures no longer holding the most populous state’s figures constant.”
“The trend in initial claims has resumed its gradual descent, but filings remain extraordinarily high seven months into the crisis.”
“Today’s report overlaps with the October payroll report survey week. Since the September survey week, initial claims have fallen 79K and suggest the labor market’s recovery remains intact, but the pace continues to slow.”
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