BofA Securities Sees Another 6.5M Initial Jobless Claims This Week

After a record 10 million initial jobless claims over the past two weeks, BofA Securities' economist Alexander Lin sees another horrid report this week. Lin sees another 6.5 million initial claims. This would be above the consensus of 5.175 million new claims.

Lin cited data from 16 states which indicated 2.3 million for the upcoming report, matching the week ending March 28 for these 16 states.

The economist also said the risks are tilted to the upside, citing state governments shifting resources to process claims and Google Trend data on 'unemployment benefits' searches. Further, he cited the CARES act which increases eligibility for jobless claims to self-employed and gig workers, extends the maximum number of weeks that one can receive benefits, and provides an additional $600 per week until July 31.

The new initial jobless claims number is expected to be reported on Thursday morning (4/9/20).

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