Jobless claims rise slightly for the week ended September 18

KEY POINTS 

-- Initial jobless claims rose to 3,62,000 last week, rising by 27,000 compared to a week before

-- Insured jobless claims fell to 2,802,000 as compared to last week

New claims for unemployment in the U.S. rose as the U.S. Labor Market published its Unemployment Insurance Weekly Claims report.

First-time unemployment claims were recorded as 362,000, for the week ended September 25, increasing by 27,000 a week before and greater than the 335,000 Dow Jones estimate.

The seasonally adjusted total was the highest since the 377,000 for the week ended August 7. The figures depict a slump in hiring amid growing concerns about the pace of the economic recovery and how the pandemic will affect the economy in October.

The four-week moving average for continuing claims fell to 2.8 million, dropping by 15,750. This is the lowest figure reported since March 14, 2020, the early days of the COVID-19 pandemic.

Thursday’s report showed that the number of seasonally adjusted insured unemployment claims during the week ending September 18 was 2,802,000, a decrease of 18,000 from the previous week's revised level. 

Unemployment benefit claims have fallen steadily since mid-July as employers are retaining workers despite the Delta variant, to counter the rise in demand due to the reopening of the economy. 

The number of people enrolled under all programs fell to 11.25 million, a drop of 856,440, as compared to 26.6 million, from a year ago.

The recent increase in COVID-19 cases has contributed to a slowdown in hiring during August, but the initial claims show that employers aren’t laying off workers.

STATE-WISE FIGURES

About half of U.S. states had opted to end their participation in the enhanced federal unemployment benefits earlier this summer, while the rest continued to offer the benefits through September 6.

Virginia saw a huge rise, with 12,879 new filings whereas hurricane-ravaged Louisiana saw a decline of 7,308.

California saw 24,221 new claims, according to unadjusted numbers after the state implemented a program providing an additional week of benefits for those who had been cut off from enhanced aid.

Picture Credits: AP