After unexpectedly jumping to five-week highs last week, analysts expected initial jobless claims to return to a decline once again this week. They were wrong as the number of Americans applying for unemployment benefits for the first time jumped to 362k (from 351k), significantly worse than the 330k expected.
Source: Bloomberg
That is the highest number of initial claims in seven weeks.
Continuing claims were flatish from the prior month’s revision but also worse than expected at 2.802mm.
The reason we are seeing initial claims jump and continuing claims stall is perhaps evidenced in the chart below as the total number of Americans on some form of dole collapsed last week (from around 12mm to around 5mm) as Pandemic aid was shut off…
Source: Bloomberg
Will this mean Americans will start applying for the millions of jobs that are out there? Or are they banking on another round of extended handouts from the Democrats?