US Initial Jobless Claims: Millions punched in the gut – BMO

Jennifer Lee from the Bank of Montreal recaps the latest Initial Jobless Claims figures released by the US administration, which resulted in 3.17 million.

Key quotes

“For the fifth week in a row, fewer Americans filed for unemployment insurance. But at 3,169,000 in the week to May 2, well, that is still far, far above what anyone wants to see.”

“Continuing claims, climbed by 4,636,000 to 22,647,000, in the last week of April. If this series stays elevated for long, then that would be a sign of temporary losses becoming permanent.”

“As the economy slowly reopens, the numbers should start falling. These weekly figures, and other more high-frequency releases (mortgage apps, chain store sales), will be watched like a hawk.”