US: Labor market’s recovery remains precarious – Wells Fargo

Data released on Thursday showed initial jobless claims rose unexpectedly above one million last week. According to analysts at Wells Fargo, the data reflects the recovery in the labor market remains precarious. 

Key Quotes: 

“Initial jobless claims rose unexpectedly for the week ending August 15, crossing back above one million to 1.11 million. The latest numbers on initial filings overlaps with the August payroll survey week.”

“President Trump has approved $300 in extra weekly benefits, down from $600 at the end of July, but states need to apply to FEMA and reconfigure payment processes. While payments will be retroactive, only a handful of states have been approved and the delay in payments will weigh on spending given the lofty ranks of the unemployed.”