Initial Jobless Claims structural change
A Department of Labor Official noted that “less than 50% of people eligble for fiiing an Initial Jobless Claims do so”. The reasons for not filing for an Initial Jobless Claim is thought to be an eligibility issue; people don’t file because they don’t think they are eligible. A Department of Labor spokesperson notes that current special factors, the implementation if EUC and state generated letters to previous claimants, mean Initial Claims could be higher for 4 to 6 weeks. The Labor spokesperson notes that the Tier 3 Emergency Unemployment Compensation program was signed by the President on 30 June and states started sending letters to possible claimants on 6 July. Labor notes that the 4 to 6 week of higher claims is based on the 4 to 6 week period in 2002 when Initial Claims rose due to the enactment of the Temporary Extended Unemployment Compensation act. The TEUC was enacted in 2002 and lasted until 2004. In short, we should look for higher Initial Claims for at least the next 4 to 6 weeks.