Is leap in jobless claims just a technical glitch?
Unemployment claims in California rocketed to their highest level in five months last week, raising uncertainties about the state’s economic recovery from the pandemic.
California workers filed 75,800 initial claims for unemployment during the week ending Sept. 18, an increase of 24,200 from the previous week, the U.S. Labor Department reported Thursday.
The weekly jobless claims were the highest such first-time filings have reached since the week ending April 24 — nearly five months ago — when jobless claims totaled 78,600.
The increase of 24,200 claims is the largest one-week increase since April 3, when jobless filings jumped by 39,100 during the seven-day stretch.
Nationwide, workers filed 351,000 initial claims for unemployment last week, an increase of 16,000 from the 335,000 that workers filed the prior week, the Labor Department reported.
In a research report, Contingent Macro Advisors concluded that the recent jump in applications for unemployment benefits — especially so last week in California and Virginia — likely reflected a technical problem in processing the claims: “For now, the jump in claims in the last two weeks is not yet alarming but it certainly bears close watching in the coming weeks.”
Hiring nationwide, which has averaged more than 585,000 jobs a month this year, slowed to just 235,000 in August as the delta variant disrupted the recovery. Restaurants and bars cut nearly 42,000 jobs last month as COVID-19 cases picked up.
Household wealth surges along with home prices in the U.S.
U.S. household net worth surged to a fresh record in the second quarter as Americans enjoyed an ebullient stock market and the largest-ever increase in the value of their real estate holdings.
Household net worth increased by $5.8 trillion, or 4.3%, to $141.7 trillion in the second quarter, a Federal Reserve report out Thursday showed. The advance included a $3.5 trillion gain in the value of equities and a $1.2 trillion improvement in real estate held by households.
Stocks have surged to record highs, and low borrowing costs have supported a flurry of homebuying — and ultimately home price appreciation. The figures highlight how the massive support provided by the government and the Fed has bolstered Americans’ wealth.
Equity shares as a percent of total household assets rose in the second quarter to almost 29.5%, up from 25.6% in 2019, the Fed’s report showed.
But not everyone is benefiting from those wealth gains. A large share of Americans are not invested in the stock market, and for many renters, the sharp rise in housing prices pushed the reality of owning a home further out of reach.
Some retail workers getting more hours during holiday season
Target is planning less seasonal hiring than last year while relying more on its existing workforce amid the tight labor market.
The retailer will offer current employees 5 million more hours during the holiday shopping rush, implying a boost to total paychecks of more than $75 million. The goal for seasonal hires is 100,000, Target said in a statement Thursday. That’s down from 130,000 last year.
Target’s greater dependence on current employees underscores the labor hurdles facing U.S. companies as they struggle to attract and retain workers. On average, hourly Target employees are already working nearly 15% more hours than they were a year ago, the Minneapolis-based retailer said.
“We are offering more hours to team members who want them,” Melissa Kremer, the company’s chief human resources officer, said in the statement. “We have worked to provide our team members with more consistent schedules, which means more consistent paychecks and a more consistent way to manage their life.”
Target’s plan contrasts with that of a key package-delivery partner, FedEx Corp., which is aiming to increase seasonal hiring to 90,000 workers from 70,000 last year. United Parcel Service Inc. expects no change to its seasonal hiring goal, which will again be about 100,000.