Real U.S. Covered Employment
The U.S. Weekly Jobless Claims, as published by the Department of Labor, is a single number that says very little from a macro perspective, and the “Continued Jobless Claims” provides a better view of economic strength. In addition, when placing the continued jobless claims within the context of the “Covered Employment” and labor force participation rate, the end result is far more useful. It’s only natural that jobless claims will contract if the labor force is shrinking, because over time less and less workers can file for the benefits. Furthermore, when adjusted for the historic (1990-2006) average labor force participation rate of 67.11% used in the “Real U.S. Unemployment Rate,” the visible trends are a better representation of the underlying strength of the labor market. The participation rate adjusted percentage shows that less workers than stated by the government qualify for benefits.