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U.S. weekly jobless claims drift lower; personal income falls in August
Oct 1, 2020
WASHINGTON (Reuters) - The number of Americans filing new claims for jobless benefits fell last week but remained at recession levels, while personal income dropped in August, underscoring the need for another government rescue package for businesses and the unemployed.
FILE PHOTO: A help wanted sign is posted at a taco stand in Solana Beach, California, U.S., July 17, 2017. REUTERS/Mike Blake/File Photo/File Photo
The decline in initial claims reported by the Labor Department on Thursday likely reflected a decision by California to suspend the processing of new applications for two weeks to combat fraud. Economists are warning that the economy and labor market recovery from the COVID-19 slump could sputter without an infusion of new money from the government.
House of Representatives Speaker Nancy Pelosi, a Democrat, and Treasury Secretary Steven Mnuchin are working toward a bipartisan agreement for another fiscal package.
Initial claims for state unemployment benefits decreased 36,000 to a seasonally adjusted 837,000 for the week ended Sept. 26. Economists polled by Reuters had forecast 850,000 applications in the latest week.
California is using the two-week pause to reduce its claims processing backlog and implement fraud prevention measures. The Labor Department acknowledged the suspension could result in “significant” week-to-week swings in initial claims “unrelated to any changes in economic conditions.”
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