US Jobless Claims shows risk of the labor market’s recovery going into reverse – Wells Fargo

Data released on Thursday showed an unexpected increase in initial jobless claims to the highest level in seven weeks. Analysts at Wells Fargo point out the number of benefit recipients is still elevated at 25.3 million as additional support remains elusive. 

Key Quotes: 

“The risk of the labor market’s recovery going into reverse was on full display with the latest jobless claims report. Initial filings for regular state programs rose well-above expectations to 898K.”

“Continuing claims declined 1.2M the week ending Oct. 3, but the drop likely reflects more workers exhausting benefits.”

“The number of benefit recipients across all programs moved down slightly the week of Sep. 26, but at 25.3M it illustrates the widedegree of stress that remains within the labor market.”