California Layoffs Jump As Initial Claims Meet Flat Expectations

The last few weeks have seen initial claims somewhat flatline stalling the downtrend of the previous six months (even as today's print dropped 9k from the previous week's revised data). Today's very small miss (346k vs 345k expectations) is the second week in a row. While delayed a week, 39 states saw an improvement in claims while 14 saw claims rise but it is most notable that California saw over 15,300 layoffs in the services industry, not exactly the sign of a strengthening recovery and the trickling down wealth effect (especially given the pace of real estate gains on the West Coast).