US Jobless Claims Drop to 166,000

The United States Department of Labor (DOL) has reported a decrease in unemployment claims this week. 

According to data released by DOL, the seasonally adjusted initial claims as of April 2 were recorded at 166,000, which was down by 5,000 compared to last week’s level. 

US DOL Secretary Martin Walsh, in a tweet, has said the numbers of unemployment claims were also back to a 54-year low. 

DOL has said that part of the drop in claims was due to a revision of the seasonal factors, the government’s model for removing seasonal fluctuations from the data.

“Prior to the pandemic, the unemployment insurance claims series used multiplicative models to seasonally adjust the claims. Starting in March 2020, the Bureau of Labor Statistics staff, who provide the seasonal adjustment factors, specified these series as an additive,” DOL’s news release read. 

Based on DOL’s news release, now that most of the pandemic’s strong effects on the unemployment insurance (UI) series have subsided, the seasonal adjustment models were stated as multiplicative models once more. 

“Statistical tests suggest that the UI series should be multiplicatively approximated in normal times,” DOL added.

The previous week’s reading was revised down by 31,000 to 171,000.

Ohio (+3,580) and Michigan (+3,545) have seen the biggest increases in initial claims for the week ending March 26.

California (+3,256), Texas (+2,251), and New York (+761) had the biggest increases, while Kentucky had the largest decline (-2,034), Pennsylvania (-732), Tennessee (-235), Florida (-165), and Connecticut (-165) were among the states with the lowest unemployment rates (-138).

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