The number of people filing claims for unemployment benefits dropped sharply last week as the US labor department switched to a new method of counting weekly jobless claims figures.
However, last week the labor department announced it was switching its statistical model to better reflect the extraordinary number of unemployment claims made during the pandemic.
While the fall in the latest claims numbers suggests firings are slowing, the job market remains deeply troubled. The labor department said the total number of people claiming benefits in all programmes for the week ending 15 August was over 29 million, an increase of 2 million from the previous week.
On Friday, the August jobs report will be released. The government's broadest look at the labor market is expected to show another dip in the unemployment level to below 10% as workers are rehired following the lifting of quarantine measures. The level, however, is expected to remain close to the peak witnessed in the Great Recession.
US jobless claims drop sharply as government changes counting method
Claims down to 881,000 from 1m the previous week, after labor department said it was changing its statistical model to better reflect impact of Covid
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