Initial jobless claims rose in the US last week to 742K against expectations of a modest decline to 710K. Claims are likely to stay elevated amid the latest wave of COVID, with the ranks of the long-term unemployed rising, says analysts at Wells Fargo.
Key Quotes:
“The latest wave of COVID and renewed efforts to combat its spread is weighing on the labor market’s recovery. Initial jobless claims rose by 31K the week ending Nov. 14.”
“Continuing claims for regular benefits fell by 429K the week of Nov. 7. But the number of workers on extended benefit programs rose through Oct. 31 (most recent week available), reflecting a growing number of long-term unemployed.”
“With more localized restrictions and signs of households hunkering down the past couple of weeks, we expect initial filings and continuing claims recipients to stay elevated.”
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