Home About Latest Browse RSS Advanced Search

Federal Reserve Bank of San Francisco
FRBSF Economic Letter
Do initial claims overstate layoffs?
Bart Hobijn
Aysegül Sahin

Initial claims for unemployment insurance averaged a stubbornly high 468,000 in the year ending December 2010, but have recently come down quickly. Many analysts interpret this as a sign that layoffs were too high to support a strong labor market recovery during most of 2010. However, claims data may have exaggerated layoffs in 2010 because the fraction of unemployed workers applying for benefits was higher than before the recession. If the proportion of eligible workers who applied were held constant, 2010 claims would have averaged roughly 20% less than the actual reading.

Download Full text
Download Full text
Cite this item
Bart Hobijn & Aysegül Sahin, "Do initial claims overstate layoffs?" , Federal Reserve Bank of San Francisco, FRBSF Economic Letter, number 04, 2011.
More from this series
JEL Classification:
Subject headings:
Keywords: Unemployment ; Unemployment insurance ; Labor market
For corrections, contact Federal Reserve Bank of San Francisco Research Library ()
Fed-in-Print is the central catalog of publications within the Federal Reserve System. It is managed and hosted by the Economic Research Division, Federal Reserve Bank of St. Louis.

Privacy Legal