First-time claims for jobless benefits fell slightly last week to 860,000, lower than predictions by Dow Jones economists.
For the week ending Sept. 12, the advance figure for seasonally adjusted initial claims fell by 33,000 from the previous week’s revised level of 893,000, the U.S. Department of Labor (DOL) reported on Thursday (Sept. 17).
“Companies which have helped to provide a bridge to some semblance of normalcy, principally in technology, have seen increased demand for their services,” Mark Hamrick, senior economic analyst with Bankrate.com, said in a statement. “Even so, consumers will remain cautious about the risks of being exposed to COVID-19 as they avoid public-facing businesses. Others won’t spend because of losses of income and employment.”
Hamrick noted there could be more pain ahead if Congress and the White House fail to approve new funding to avoid a government shutdown on Oct. 1.
“If officials let that happen, they’ll be adding financial insult to injury caused by the pandemic,” he said.
The largest decreases in jobless claims for the week ending Sept. 5, the most recent data available, were seen in Kentucky (7,219); Florida (5,334), where there were fewer layoffs in the agriculture, construction, manufacturing, retail and service sectors; Pennsylvania (2,257), where accommodation and food services, construction, manufacturing and administrative support industries saw improvements; Kansas (1,915); and Michigan (994).
The largest increases in initial claims were in California (23,841), as the service industry reported layoffs; Texas (8,618), which saw the loss of manufacturing, retail, education, accommodation and food and professional services jobs; Louisiana (8,375); New Jersey (2,402); and Washington (2,173).
The total number of Americans claiming benefits for the week ending Aug. 29 totaled just over 29.7 million, compared to less than 1.5 million people claiming benefits in all programs in the comparable week last year.
