Takeaway: Initial claims jumped +24% w/w to 965K as the recovery in continuing claims has seemingly stalled out.

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Another Stubborn Inflection Upwards For Weekly U.I. Claims - 05.28.2020 covid jobs report cartoon  3

HEDGEYE FINANCIALS WEEKLY LABOR MARKET READING

Another Stubborn Inflection Upwards For Weekly U.I. Claims - Summary 

Regular state claims rose +181K (+24%) w/w to 965K, while new PUA claims rose +123K (+76%) w/w to 284K.

Another Stubborn Inflection Upwards For Weekly U.I. Claims - Initial 

Another Stubborn Inflection Upwards For Weekly U.I. Claims - PUA

Continuing state claims of 5.3 million rose +4% w/w as the downtrend appears to have largely flattened out.

Another Stubborn Inflection Upwards For Weekly U.I. Claims - Continue

Meanwhile, Total Claimants, a figure that is lagged by two weeks, dropped -744K (-4%) w/w to 18.4 million.

Another Stubborn Inflection Upwards For Weekly U.I. Claims - Total

As we mentioned last week, because of the lag in the PEUC and Total Claimant data, seasonality from the year-end and holiday period will continue to manifest in those series for at least another couple of weeks.

Another Stubborn Inflection Upwards For Weekly U.I. Claims - PEUC

Notwithstanding the sticky and dauntingly high level of unemployment claims, the projected benefits of refreshed stimulus and the new, greater prospects for additional stimulus following the forthcoming shake-up in Washington will more than likely prove successful in further suppressing the symptoms of widespread and increasingly permanent unemployment over the next few months.

Another Stubborn Inflection Upwards For Weekly U.I. Claims - 1526

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