The number of new applications for unemployment benefits last week rose to 885,000, the Labor Department reported Thursday, in a sign that the pandemic is damaging the labor market.
Economists had projected that there would be 815,000 new jobless claims last week.
Thursday’s report is a 23,000 increase over the prior week’s total of 862,000 and continues the trend of increasing claims. Jobless claims had been on a slow decline since early April but reversed course in mid-November as COVID-19 cases and hospitalizations have risen to the highest levels of the pandemic in recent weeks, leading to shutdowns of businesses in many states.
In historical terms, jobless claims are extremely high, hinting at massive numbers of layoffs. In the comparable week a year ago, there were roughly 220,000 seeking unemployment benefits.
Lawmakers are pursuing a deal on a virus aid package that would provide roughly $900 billion and include a new round of stimulus checks, a source familiar with the negotiations told the Washington Examiner.
The deal would also provide an additional four months of supplemental federal unemployment insurance at $300 per week and approximately $300 billion for small business loans.
It would also provide money for schools and day cares, rental assistance, and a temporary increase in food stamp benefits.
If the aid is advanced in both chambers, it will be the first significant relief package approved by Congress since the CARES Act, which was enacted in March.
