Initial Claims Remain at Horrific Levels

Initial unemploument claims rose by 4,000 to 870,000. 

So, still above any weekly claims level that was not in 2020.

If you are wondering why the steep drop and then a flattening out, probably because the aid programs stopped:

The number of applications for unemployment benefits has held steady in September at just under 900,000 a week, as employer uncertainty about the economic recovery six months into the coronavirus pandemic continued to restrain hiring gains.

Jobless claims increased slightly to 870,000 last week from 866,000 a week earlier, according to Thursday’s Labor Department report. The totals remain well above pre-pandemic peaks but are down significantly from nearly seven million in March.

The labor market has added jobs in the prior four months after steep declines in employment at the beginning of the pandemic, helping bring down the jobless rate to 8.4% in August from near 15% in April. But the pace of gains has slowed recently, and persistently elevated jobless claims in September point to continued cooling in the jobs market.

This is not a good economy.