New applications for unemployment benefits totaled over 2.9 million last week, the Labor Department reported Thursday.
Economists had projected 2.7 million new jobless claims.
The number of workers seeking aid remains historically high but has dropped considerably from the nearly 7 million claims that were filed the week ending March 28.
Since the economy halted in mid-March to slow the spread of the coronavirus, 36.5 million workers have filed for unemployment benefits, an unprecedented figure since the federal government began tracking unemployment in the 1930s.
Jobless claims have skyrocketed. This week last year, there were only 217,000 new claims made. Similarly, more than 25 million workers claimed benefits in all programs for the week ending April 25. That figure was 1.6 million for the same week in 2019.
In California, the Labor Department shows, nearly a third of workers, 27.7%, were unemployed for the week ending April 25. In Michigan, nearly a quarter were jobless, 23.1%, for the same week.
The largest job losses last week occurred in Connecticut, where over 298,000 filed for benefits, a figure that is not adjusted for seasonal variations.
Federal Reserve Chairman Jerome Powell on Wednesday warned that the job crisis could cause lasting damage.
“Long stretches of unemployment can damage or end workers’ careers as their skills lose value and professional networks dry up, and leave families in greater debt,” Powell said at an event sponsored by the Peterson Institute.
President Trump is encouraging states to reopen as quickly as possible to resume more normal commerce. All 50 states have plans to reopen.
The new jobless claims come as House Democrats on Tuesday introduced the HEROES Act, which is a new round of coronavirus relief legislation costing more than $3 trillion.
The bill extends the $600 payment boost to unemployment benefits through January for most workers. For those receiving jobless benefits on Jan. 31, the payment would be extended through March in some cases. The added benefit is currently scheduled to expire on July 31. Lawmakers on both sides of aisle are eyeing changes to the payment to alleviate the incentives leading some workers to choose to remain jobless.
The House on Friday will vote on the HEROES Act, where passage is expected. The measure stands little chance of passing the Senate. Majority Leader Mitch McConnell, a Kentucky Republican, has labeled the measure a partisan wish list.
