Jobless claims, total unemployment level worse than expected – CNBC

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The numbers came the day before the Labor Department releases its nonfarm payrolls report for May. Economists surveyed by Dow Jones are expecting a decline of 8.3 million and a 20.5% unemployment rate, more than double the highest previous level since the Great Depression.

As states begin to reopen after being almost completely shut down for the better part of three months, so have signs grown for an economic crisis likely to drive the unemployment rate to about 20% for May. More than 42.6 million Americans have filed jobless claims since the shutdown began in mid-March.

A day before the jobless claims report, ADP’s private payrolls report on Wednesday showed a decrease of 2.76 million positions in May. While that remains far higher than anything the U.S. economy saw in the pre-coronavirus era, it was well off Wall Street expectations of an 8.75 million decline.

That led Moody’s Analytics economist Mark Zandi to declare that “the Covid-19 recession is over.” Moody’s assists ADP in putting together the monthly private payrolls report. “That would make it the shortest recession in history,” Zandi said. “It will very likely be among the most severe.”

Some economists have been focusing more on the jobless claims number not adjusted for seasonal factors, which are less in play with the unusual nature of the coronavirus-related layoffs.

That number totaled 1.603 million, a plunge of 314,604 from the previous week.

At the state level, New York showed the most glaring change, falling 106,106 from a week ago, according to unadjusted numbers. Michigan declined by 23,539 and Texas saw a decrease of 20,896. Significant gains came from Florida (31,083) and California (27,199).

Source Article from https://www.cnbc.com/2020/06/04/weekly-jobless-claims.html

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