The weekly decline in total unemployment and initial claims comes as the US begins to reopen its economy following about two months of sweeping lockdowns to contain the spread of COVID-19. Now, all 50 states have relaxed at least some of the restrictions they put in place in March.
Still, the headline number may overstate the true extent of hiring, according to Shepherdson. This is because California requires people to file for benefits on a bi-weekly basis, and this report reflects an off-week. California continuing claims fell by 1.4 million this week, even though the state remained in a near-total lockdown during the week reflected. David Herro was the world's best international stock-picker for a decade straight.
Some economists are hesitant to cheer the decline or say it represents a turn in the labor market. While there may be signs that hiring is picking up, there's still a long way to go before the damage of the coronavirus pandemic is undone. The decline "may reflect more the fact the continuing claims numbers are state benefits and don't include the people claiming the Pandemic Unemployment Assistance - they are not eligible for regular or extended unemployment benefits," said Knightley.
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