US Jobless Claims to fall for the sixth straight week, but remain in the range of 3 million – Wells Fargo

On Thursday, the weekly US Jobless Claims report will be released. Analysts at Wells Fargo expect a lower reading compared to the previous week, but they see initial claims still around three million. 

Key Quotes: 

“Since the middle of March, 30.3 million Americans have filed for unemployment insurance. While industry detail is not available, we suspect the trend in layoffs has shifted. The first wave was dominated by displaced leisure & hospitality workers, workers at doctor & dentist offices and administrative positions in general. A larger portion of more recent job losses have likely been in manufacturing, logistics and professional services. The criteria for receiving benefits have also widened to include many contract workers, which may be one reason claims fell less than expected last week.”

“We expect claims to fall for the sixth straight week, but remain in the range of 3M. For the past six weeks, eight states have had cumulative unemployment claims that equate to 24% or more of their February 2020 labor force.”