Research
UI and PUA Initial Claims Combined Rise for Fourth Straight Week
Daniel Zhao
Chief Economist at Glassdoor | Sep 10, 2020
Initial unemployment insurance (UI) claims increased slightly last week, as weekly layoffs continue and claims struggle to resume their downward trajectory. Initial claims are likely being propped up this week due to the effects of Hurricane Laura and the ongoing California wildfires. The high level of UI claims is still concerning—a sign that there is still enormous economic churn going on beneath the steadily improving labor market.
Initial UI claims rose by 20,140, rising to 857,148 from 837,008, on a non-seasonally adjusted basis, according to the latest figures from the Department of Labor for the week ending September 5. Pandemic Unemployment Assistance (PUA) claims increased significantly to 838,916, continuing a two-week surge driven largely by an unusual spike in claims in California and Arizona. UI and PUA claims together have risen for the last four weeks in a row. 
On a seasonally-adjusted basis, 884,000 initial UI claims were filed, unchanged from the prior week. This is the second week using the Department of Labor's new seasonal adjustment methodology. As a reminder, seasonally adjusted initial claims from before the week ending August 29 should not be compared to current seasonally adjusted claims. For more detail, please refer to our explainer on the seasonal adjustment change here.
Continuing claims for UI rose to 13.2 million for the week ending August 29, on a non-seasonally adjusted basis. This is the first increase in continuing claims in 6 weeks. Over the last two months, continuing claims have been more optimistic than other economic indicators. The one-week increase doesn't contravene the overall downward trend, which suggests hiring is picking up to help mitigate job losses. However, some of the decline is also due to the exhaustion of UI benefits for claimants who will now have to turn to the Extended Benefits or Pandemic Emergency Unemployment Compensation programs instead of traditional UI.
Friday's jobs report from the Bureau of Labor Statistics appeared to show a labor market improving faster than expected, but with a deep economic hole to climb out of. UI and PUA claims show over a million new claimants every week, a reminder that there is still ongoing economic damage rippling through the economy.
To speak with Daniel Zhao about today’s report or to discuss labor market trends, contact pr at Glassdoor dot com. For the latest economics and labor market updates, follow @danielbzhao on Twitter and subscribe to Glassdoor Economic Research.
On a seasonally-adjusted basis, 884,000 initial UI claims were filed, unchanged from the prior week. This is the second week using the Department of Labor's new seasonal adjustment methodology. As a reminder, seasonally adjusted initial claims from before the week ending August 29 should not be compared to current seasonally adjusted claims. For more detail, please refer to our explainer on the seasonal adjustment change here.
Continuing claims for UI rose to 13.2 million for the week ending August 29, on a non-seasonally adjusted basis. This is the first increase in continuing claims in 6 weeks. Over the last two months, continuing claims have been more optimistic than other economic indicators. The one-week increase doesn't contravene the overall downward trend, which suggests hiring is picking up to help mitigate job losses. However, some of the decline is also due to the exhaustion of UI benefits for claimants who will now have to turn to the Extended Benefits or Pandemic Emergency Unemployment Compensation programs instead of traditional UI.
Friday's jobs report from the Bureau of Labor Statistics appeared to show a labor market improving faster than expected, but with a deep economic hole to climb out of. UI and PUA claims show over a million new claimants every week, a reminder that there is still ongoing economic damage rippling through the economy.
To speak with Daniel Zhao about today’s report or to discuss labor market trends, contact pr at Glassdoor dot com. For the latest economics and labor market updates, follow @danielbzhao on Twitter and subscribe to Glassdoor Economic Research.Daniel Zhao
Daniel Zhao is Chief Economist at Glassdoor. On Glassdoor's Economic Research team, he has conducted research using Glassdoor's unique data on a variety of topics affecting job seekers and employers ranging from the health of the job market to pay transparency to employee engagement & retention. His work has been cited in publications like the New York Times, the Harvard Business Review and more. Prior to joining the Economic Research team, he also worked on improving the user experience for Glassdoor’s consumer jobs product and mobile app. He holds a bachelor's degree in applied mathematics and economics from Harvard College.
Tags:Unemployment
