Since the height of the coronavirus crisis last spring, when state "stay-at-home" and business closure orders resulted in record unemployment filings, the number of new and continued claims has generally fallen each week.
Nonetheless, although the USA weekly jobless claims appeared to have stalled over 800,000, suggesting risks of a plausible economic stagnation at large, analysts had expressed sheer discontent over the latest leg of weekly jobless claims data, since the U.S. state of California that represents the world's fifth-largest economy, had not been revealing its initial jobless claims data for the past two weeks due to an indication of fraud alongside a backlog in applications.
Maryland, whose governor, has been touting the state's lower unemployment rate did get some bad news this week when initial jobless claims rose above 3,000, according to the weekly report from the United States Department of Labor.
Finalized data from the Nevada Department of Employment, Training and Rehabilitation (DETR) show initial claims for unemployment insurance (UI) totaled 7,941 for the week ending October 3, up 416 claims, or 5.5 percent, compared to last week's total of 7,525 claims. In Mahoning County, there were 388 new claims for more than 36,500 over the duration of the pandemic.
In the absence of up-to-date data, the Labor Department is assuming California's claim number was unchanged from its pre-shutdown figure of more than 225,000 applications, or more than one-quarter of the national total. Weekly applications for unemployment benefits have always been considered a proxy for job cuts. Roughly half of the 22.2 million people who lost their jobs in the early days of the pandemic remain out of work.
"We can't view it as real-time job separation data", said Elizabeth Pancotti, a policy adviser at Employ America, a left-leaning advocacy group, referring to layoffs.
California has actually stopped the processing of its preliminary claims for a second-straight week to deal with its advantage stockpile and scams avoidance. "We're still seeing massive overcounting of initial claims".
Also, the number of Americans transitioning onto Pandemic Emergency Unemployment Compensation - a federal program for people who have exhausted state benefits - increased by 153,700 to 1.96 million in the week ended September 19. Only after they have been rejected under that system can they apply for PUA.
Economists warn that without more aid, layoffs will rise again.
Organized fraud also has been a problem, particularly in the PUA program.