With Thursday's weekly jobless claims report, the Labor Department updated the methodology used to seasonally adjust the initial claims and the so-called continued claims data. Prior to the COVID-19 pandemic, the unemployment insurance claims series used multiplicative factors to seasonally adjust the data.
It said this approach had resulted in larger-than-usual revisions for many weeks over the last five years.Initial claims for state unemployment benefits dropped 18,000 to a seasonally adjusted 228,000 for the week ended April 1. Data for the prior week was revised to show 48,000 more applications received than previously reported.
The government updated seasonal factors for 2023 and revised factors for 2018 through 2022. But it added that "the most volatile economic period of the pandemic, including the period running from March 2020 to June 2021, was not revised and will continue to be based on additive adjustments."
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