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PNC Chief Economist Gus Faucher: Large Declines in Unemployment Insurance Claims; Unemployment Still Elevated

Michigan Business Network
September 17, 2020 1:00 PM

Working at PNC Financial Services Group: 6,167 Reviews | Indeed.com

Initial claims for unemployment insurance fell almost 9 percent in the week ending September 12, to 790,000, before seasonal adjustment. Continuing claims under regular state UI programs fell 8 percent in the week ending September 5 to 12.32 million.

Total continuing claims, including those under the Pandemic Unemployment Assistance program, were 29.77 million in the week ending August 29, up less than 1 percent over the previous week.

The labor market continues to heal from the Viral Recession, but unemployment remain extremely elevated and will remain a problem for at least a couple of years. With initial claims at almost four times their pace before the pandemic, layoffs are far higher than normal. In addition, initial claims have been roughly flat since early August, suggesting that the pace of improvement in layoffs is slowing, although they are down substantially from above 6 million in late March at the worst of the jobs crisis. With almost 30 million people receiving some form of unemployment assistance the labor market is still in the midst of an historic downturn; total claims were around 2 million before the crisis. Conditions are getting better, with total claims down from May, but tens of millions of Americans remain unemployed.

Between May and August the U.S. economy has regained almost one-half of the more than 22 million jobs lost between February and April because of the pandemic. But data on unemployment insurance claims indicate that job growth will be slower through the rest of 2020 and that full recovery in the labor market will take years.

The PNC Financial Services Group, Inc. is one of the largest diversified financial services institutions in the United States, organized around its customers and communities for strong relationships and local delivery of retail and business banking including a full range of lending products; specialized services for corporations and government entities, including corporate banking, real estate finance and asset-based lending; wealth management and asset management. For information about PNC, visit www.pnc.com.

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