- Aug 19, 2010
- Reaction score
- On a hill
..A sharp drop in the number of weekly jobless claims filed last week was caused by the failure of one large state to report all of its claims, a Labor Department spokesman confirmed to FOX Business.
Initial jobless claims, which are a measure of the number of people recently laid off, fell by 30,000 to a seasonally adjusted 339,000, the lowest level in more than four years.
But the Labor Department spokesman said the numbers were skewed by one large state that underreported its data. The spokesman declined to identify the state, but economists believe California is the only state large enough to have such a significant impact on the overall numbers.
According to the spokesman, the reason that states claims numbers fell short was because the state left out a pile of unprocessed claims related to seasonal factors around the beginning of the fourth quarter, which began Oct. 1.
In a research note, Stephen Stanley of Pierpont Securities summed up the data: In short, this reading is worthless in terms of informing on the general economy.
Read more: Jobless Claims Data Skewed Downward | Fox Business