Last week, initial weekly jobless claims unexpectedly plunged to 339k from 369k during the week prior.
That blew away economists expectations for 370k.
But the number was met with a mix of confusion and skepticism.
With the release, a Department of Labor economist reportedly said that some large unnamed state accounted for the bulk of the drop as it didn't report certain quarterly claims that were expected.
A source told Business Insider's Henry Blodget that the mystery state was likely California, and that the shortfall in claims was likely due to a limited staff that was unable to process all of the claims.
The source estimated that nearly 15k to 25k claims went unprocessed.
However, spokesperson for California told Business Insider that our source was wrong and that the level of California's jobless claims reflected a stabilizing local economy.
It's still unclear exactly what happened last week.
However, the consensus among economists is that jobless claims will rise this week to 364k.
We will be covering the release LIVE at BusinessInsider.com.
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