Economists suggest a state backlog could explain why new unemployment numbers are still so high


Falling unemployment claims might be even lower than they appear.
Around 1.5 million Americans filed for unemployment benefits last week, according to Labor Department numbers released Thursday, narrowly beating economists' expectations of 1.6 million. That's down from 1.8 million the week before, and due to backlogs of unemployment claims still piled up in some states, some economists think the real numbers could be even smaller, Politico reports.
With more than 40 million Americans filing unemployment claims over the past three months, several states have had trouble keeping up. Wisconsin reported a backlog of 100,000 still-unprocessed claims on Wednesday, and Oregon even brought in the National Guard to help file. As of last week, Bloomberg reports that a third of unemployment benefits totaling close to $70 billion have yet to be paid. That backlog could mean many of this week's claims were actually filed a while ago and that the economy is looking a little better than it seems — not that adding to past weeks' exploding jobless numbers is necessarily a good thing.
The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Still, Adam Ozimek, the chief economist at freelance recruiting business Upwork, thinks the whole total can't be attributed to backlogs. "We are 12 weeks into this," he tweeted, and predictions from another pair of economists continue to accurately predict unemployment totals each week based on Google searches. But Ozimek does note that this "is not a normal labor market," and it's hard to say for certain what's happening because "we don't know what an entire economy frozen for almost three months and then slowly thawed will look like."
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Kathryn is a graduate of Syracuse University, with degrees in magazine journalism and information technology, along with hours to earn another degree after working at SU's independent paper The Daily Orange. She's currently recovering from a horse addiction while living in New York City, and likes to share her extremely dry sense of humor on Twitter.
-
5 bullseye cartoons about the reasons for mass shootings
Cartoons Artists take on gun worship, a price paid, and more
-
Lisa Cook and Trump's battle for control the US Fed
Talking Point The president's attempts to fire one of the Federal Reserve's seven governor is represents 'a stunning escalation' of his attacks on the US central bank
-
'Three Pads' Rayner: a housing hypocrite?
Talking Point As real estate moguls go, the Deputy PM is 'hardly Donald Trump'
-
New York court tosses Trump's $500M fraud fine
Speed Read A divided appeals court threw out a hefty penalty against President Trump for fraudulently inflating his wealth
-
Trump said to seek government stake in Intel
Speed Read The president and Intel CEO Lip-Bu Tan reportedly discussed the proposal at a recent meeting
-
US to take 15% cut of AI chip sales to China
Speed Read Nvidia and AMD will pay the Trump administration 15% of their revenue from selling artificial intelligence chips to China
-
NFL gets ESPN stake in deal with Disney
Speed Read The deal gives the NFL a 10% stake in Disney's ESPN sports empire and gives ESPN ownership of NFL Network
-
Samsung to make Tesla chips in $16.5B deal
Speed Read Tesla has signed a deal to get its next-generation chips from Samsung
-
FCC greenlights $8B Paramount-Skydance merger
Speed Read The Federal Communications Commission will allow Paramount to merge with the Hollywood studio Skydance
-
Tesla reports plummeting profits
Speed Read The company may soon face more problems with the expiration of federal electric vehicle tax credits
-
Dollar faces historic slump as stocks hit new high
Speed Read While stocks have recovered post-Trump tariffs, the dollar has weakened more than 10% this year