As PUA claims by the self-employed continued to rise, total initial claims were up 4.5% in California while dropping 9.2% for the nation as a whole.

In California, initial claims for the regular UI program were down 14.0% from the prior week to 249,007 (unadjusted). These were more than offset by a continuing sharp rise in PUA claims by the self-employed at 37.4% to 224,679. This continuing rise in unemployment stemming from the self-employed especially when compared to the rest of the nation suggests last year’s AB 5 has intensified the economic downturn in California. The recently enacted state budget allocates scarce general fund resources to both Department of Industrial Relations and Attorney General to accelerate enforcement of AB 5. Even as jobless claims rise sharply among the self-employed, the state has now committed to reduce their available income opportunities even further.

For the US as a whole, the seasonally adjusted numbers for the regular UI program are being reported as an increase of 0.8% to 1,434,000. However, in the current circumstances the unadjusted numbers are a better indicator of the current trends given that factors contributing to the current downturn overwhelm any potential seasonal effects. The unadjusted numbers in fact showed a continued drop in initial claims for the regular UI program, with the weekly numbers down 12.4% to 1,205,871. Nationally, PUA claims were also down, dropping 4.6% to 929,647.

Comparing the claims trajectories to the week of May 9 (the week following the initial spike in PUA claims), total initial claims in California (regular UI plus PUA) were up 36% over this period, while the total was down 42% for the rest of the US. This data again indicates how much more severe the economic downturn has been in California, along with the challenges this situation presents for the ability of the state to move quickly through the upcoming recovery period.

Combining the jump in initial claims numbers along with a sustained rise in the continuing claims data, 6.06 million California workers were receiving or applying for unemployment insurance last week, up 11% from the week before. This number, however, does not include initial and continuing claims for PEUC and other much smaller benefit programs.

Although not included in the figures below, claims under the new Pandemic Emergency Unemployment Compensation (PEUC) program continue to show significant numbers. This new category allows an additional 13 weeks of coverage for persons who have exhausted their regular benefits, including eligibility for the additional $600 a week. California claims were down slightly to 215,671 or 20% of total claims nationally.