New Jobless Claims Unexpectedly Rise For The Third Straight Week
Weekly jobless claims rose more than expected last week, climbing to 362,000. The figure represents an increase of 27,000 from the week prior and well above the 335,000 estimated by analysts.
The four-week moving average was 340,000, an increase of 4,250 from the previous week’s unrevised average of 335,750, meaning the moving average has been trending upwards over the past month. Total unemployment claims floating are around 2.8 million according to the Department of Labor.
For the second week in a row, a surge in claims from California accounted for a significant portion of the gains. This comes as a third state stimulus check is now expected to be sent out by California’s Golden State Stimulus Checks. Gov. Gavin Newsom‘s plan is the only one in the country of its kind, and a state surplus is now providing for approximately $400 or $500 biweekly stimulus payments for eligible residents. Newsom has stated that about two-thirds of California’s residents are eligible for the payments.
California also brought in the highest insured unemployment rate in the week ending Sept. 11 in the continental U.S. coming in at 3.4% and second to only Puerto Rico with a rate of 4.7%. The District of Columbia, Oregon and Alaska rounded out the top five, with 3.2%, 3.2% and 3.1% respectively.
California came in as the state with the largest increases in initial claims for the week ending Sept. 18 with an additional 17,218 claims, followed by Virginia with 12,140, Ohio with 4,147, Oregon with 3,413 and Maryland with 2,452.
The number of Americans filing “first-time” unemployment benefits rose by 11,000. This figure was largely expected to decrease by analysts this week but rose unexpectedly particularly in Michigan and California.
With the official end of pandemic-era stimulus programs this month, the total number of those enrolled in these programs fell to 11.25 million, a drop of 856,440 CNBC reports. Just one year ago, 26.6 million people were receiving benefits under programs the federal government had instated for coronavirus relief.