US: Hiring appears to be a little sticky – Wells Fargo

Initial Jobless Claims drop last week but less than expectations to 1.48 million. Analysts at Wells Fargo point out weekly first-time unemployment claims fell by 60,000, but they warn the prior week’s data were revised higher. They see continued improvement from Continuing Claims.

Key Quotes: 

“Not only was the latest drop in weekly first-time unemployment claims smaller than expected, but the prior week’s total was also revised higher by 32,000 claims.”

“Continuing unemployment claims also fell less than expected but still declined by 767,000 from a slightly lower revised prior level. The sustained decline in continuing claims suggest that hiring is continuing to ramp up as businesses re-open.”

“Re-opening efforts will likely be hampered by the resurgence in cases, particularly in the South. COVID-19 concerns may keep customers away, making it difficult for firms to remain open.”