Claims data and some benefit thoughts

Initial jobless claims rose to 225k from 219k last week and that was 4k more than estimated. The 4 week average was 224k vs 225k in the week before. Continuing claims were little changed, down 1k w/o/w to 1.826mm which was a hair below expectations.

Bottom line, the story remains the same with a modest pace of firing’s as measured here at the same time continuing claims remain elevated. Some things to think about though with the low level of initial claims is that for some, the gig job opportunity, aka driving for uber, delivering for Instacart for example, pays more than unemployment benefits. Thus, some choose a gig job if they lose their regular job, rather than file. Also, with most of the jobs lost over the past year mostly in technology, this is what Challenger said in their monthly job cut report with regards to that sector, “Those reductions often come with generous severance packages, as well, meaning many of these workers could afford to stay out of the labor market for a while and continue to spend.” And thus they don’t file for benefits either.