U.S. weekly initial claims rise, hints at higher rate of job separation
U.S. weekly initial claims deteriorated, implying the pace of separation might have picked up. Initial jobless claims rose 109,000 in the week ended 18 July to 1.416 million versus a revised 1.307 million the week prior. The four-week moving average in initial claims, however, ticked lower by 141,816 to 1.37 million.
Prior to this report, initial jobless claims had dropped for 15 straight weeks, though the pace of fall had been coming down over time, particularly since mid-June when the growth of COVID-19 cases started to re-accelerate. Although one report does not make a trend, today’s rise in initial claims signals at a higher rate of job separation, said Barclays in a research report.
The delay in reopening indoor dining in New York City might have contributed to the rise in weekly initial claims, said Barclays. As Covid-19 has risen sharply throughout the South and West in recent weeks, some states have delayed or partially reversed their phased reopening plans. However, the largest contributor to the rise in this week’s initial jobless claims figure was New York, where claims rose by 45,000.