U.S. Jobless Claims: A Nightmare Scenario is Unfolding

US jobless claims are out at in the high range estimate at 3283K – very bad.

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As mentioned in my note this morning, keep in mind that an undefined number of claims went unreported as states’ unemployment insurance program offices were overwhelmed by the massive number of applications both by phone and online. Some states even informed that their phone lines were saturated and their website crashed due to high demand. It means that next week’s data might be very ugly as well, or even worse.

Look at the situation in America’s four largest state economies that represent roughly 1/3 of US GDP:

jobless claims

Total jobless claims in these states are at 496K!

More to come on

Best regards.

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