California’s Data Revisions Paint Less-Dire Picture of U.S. Jobs

The number of Californians who filed for unemployment benefits the week ended Oct. 10 was almost almost a quarter less than previously reported, according to Labor Department figures that show a better trajectory than previously thought for the U.S. labor market because of the state’s size.

For the three weeks spanning late September and early October, federal reports on jobless claims showed California’s number of applications for state benefits stuck at the mid-September level of 226,179 while the state paused processing to whittle down a massive backlog and improve fraud prevention. That skewed the national reading higher because it didn’t reflect the true picture of claims in the most populous state, which is home to one of eight Americans.