U.S. unemployment claims dipping faster in States causing federal benefit end
Continuing claims for US unemployment insurance have plunged more rapidly in recent weeks resulting in terminating the federal benefits in summer compared to states with persisting $300 supplement every week until the fall.
A Reuters analysis of weekly federal unemployment data showed that from the week ending May 1 through the week ending June 12, ongoing claims for unemployment benefits dropped 17.8% in the 26 states ending benefits quickly, to 990,000, and by 12.6%, to 2.18 million, in the rest of the country.
The data do not guarantee whether hiring will also speed up in those states, an expected result of an almost all-Republican group of governors in ending the benefits early.
In fact, weekly data from small business time provider Homebase through the week ending June 20 has provided no evidence of increasing in hiring in states that have stopped unemployment benefits. But other states were seen to provide more jobs faster in recent weeks, a possible outcome of easing lockdown restrictions in Democratic-led states like California and New York.