US Jobless Claims: In the right direction – Wells Fargo

The weekly jobless claims report showed an improvement compared to the previous week’s numbers but not as much as expected. The smaller decline likely reflects some moderation in the pace of re-openings across the US explained analysts at Wells Fargo.

Key Quotes: 

“Weekly first-time unemployment claims fell by 58,000 to 1.508 million in the week ended June 13. While talk of a second wave of COVID-19 has dominated headlines, the smaller than expected decline likely simply reflects some moderation in the pace of re-opening, with the easiest re-openings behind us.”

“Jobless claims did not do a good job of anticipating May’s surprisingly large jump in nonfarm payrolls. Rehiring from temporary layoffs likely differs greatly from cyclical layoffs.”