Why Are Unemployment Insurance Claims So Low?

Source: Dante DeAntonio, Regional Financial Review, Vol. 29 no. 2, October 2018
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Initial claims for unemployment insurance continue to fall at an impressive rate, and the level of claims is low by any historical comparison. While the timeliness and frequency of UI data make it useful as an early labor market signal, it is important to understand the factors that impact the data. In this paper we show that recent changes in state UI laws have worked to depress new UI filings during the current expansion by as many as 100,000 claims per month.