The weekly US Jobless Claims report showed the best numbers since March. The trend points to only gradual improvement, however, with initial weekly claims and continued claims recipients still staggeringly high, explain analysts at Wells Fargo.
Key Quotes:
“The labor market continues to gradually improve, with initial jobless claims falling to 751K last week—the lowest level since the start of the pandemic. Nevertheless, weekly claims remain above the level hit during the worst week of the financial crisis.”
“The pace of improvement has also slowed since the summer, highlighting that after the record growth rate in GDP last quarter, the recovery’s momentum is slowing.”
“It may not take government restrictions on activity before consumer behavior adjusts to the recent rise in COVID cases across the country, which we suspect will keep businesses under pressure and layoffs elevated in the coming weeks.”
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