Please ensure Javascript is enabled for purposes of website accessibility
US Jobless Claims Jump to 853,000 Amid Resurgence of Virus
gvw_ap_news
By Associated Press
Published 3 years ago on
December 10, 2020

Share

WASHINGTON — The number of people applying for unemployment aid jumped last week to 853,000, the most since September, evidence that companies are cutting more jobs as new virus cases spiral higher.

The Labor Department said Thursday that the number of applications increased from 716,000 the previous week. Before the coronavirus paralyzed the economy in March, weekly jobless claims typically numbered only about 225,000.

The latest figures coincide with a surging viral outbreak that appears to be weakening the job market and the economy and threatening to derail any recovery. Consumers thus far haven’t spent as much this holiday shopping season as they have in previous years, according to credit and debit card data. And in November, employers added jobs at the slowest pace since April. Restaurants, bars and retailers all cut jobs last month.

The increase reflected sharp increases across the country, with new applications for jobless aid jumping more than 47,000 in California, 31,000 in Illinois, 17,000 in New York and 13,000 in Georgia. Many states, particularly California, have adopted sweeping new restrictions on business activity. But even some states that generally haven’t imposed stricter rules on businesses reported sharp increases in jobless claims last week. In Texas, for example, they jumped by nearly 20,000 to 45,000.

The worsening figures may partly reflect a rebound after applications for unemployment benefits had fallen during the Thanksgiving holiday week. Still, the increase was much larger than most economists had expected.

“It’s evident the labor market is still in crisis,” said AnnElizabeth Konkel, an economist at the Indeed job search website. “The gap between now and when a vaccine is widely distributed looms large. There’s a lot of uncertainty ahead for the labor market going into the new year.”

The total number of people who are receiving state-provided unemployment aid rose for the first time in three months to 5.8 million, the government said, from 5.5 million. That suggests that some companies have sharply pulled back on hiring.

The First Program Provides Unemployment Benefits to the Self-Employed and Contract Workers

All told, more than 19 million people are still dependent on some type of unemployment benefit. And unless Congress acts soon, nearly half of them will lose that aid in just over two weeks. That’s when two jobless aid programs that the federal government created in the spring are set to expire.

The first program provides unemployment benefits to the self-employed and contract workers, who weren’t eligible in the past. The second program is the one that extends jobless aid for 13 weeks.

Members of Congress and the Trump administration are fighting over a roughly $900 billion relief package that could extend the two programs into the spring, sparing about 9 million unemployed Americans from what would otherwise be deeper financial distress.

A bipartisan group of senators has proposed to extend the supplemental aid for four months and add $300-a-week in federal jobless aid. Treasury Secretary Steven Mnuchin on Tuesday proposed a one-time round of $600 relief checks — half the $1,200 that was provided in the spring. But Mnuchin’s proposal includes no funding for supplemental unemployment aid payments, drawing sharp objections from Democrats in Congress.

With a coronavirus vaccine nearing approval, many economists are optimistic that the economy will rebound strongly next year. But most favor another federal financial relief package to support unemployed workers, small businesses, and state and local governments until then.

New confirmed virus cases are now topping 200,000 a day, up from only about 30,000 in the spring. And the average number of deaths each day in the past seven days has surpassed 2,000, roughly matching its peak in April.

The virus’ acceleration has led many governors to impose stricter curbs on restaurants, gyms and other business activity in states from North Carolina to California and Washington state.

The Steady Stream of Layoffs Across the Country Has Intensified the Financial Hardships for Many Americans

The pandemic appears to have also sharply restricted holiday spending, in part because of stay-at-home orders and other restrictions and in part because many consumers are reluctant to go out shopping. A jump in online spending hasn’t fully offset a steep decline, compared with last year, in spending at physical stores.

According to data from Opportunity Insights, a research center affiliated with Harvard and Brown universities, spending on debit and credit cards sank nearly 12% in the week that ended Nov. 29 compared with a year earlier. That marked a sharp drop from the previous week, when such spending was down just 2.3% from 12 months earlier.

The steady stream of layoffs across the country has intensified the financial hardships for many Americans.

One of the jobless, Montrell McGraw, says he just had to cancel his car insurance and now can’t drive because his unemployment benefit of just $225 a week isn’t enough to keep up with the payments. He was able to cover all his bills when the federal government provided an extra $600 in jobless aid. But that ended in July.

McGraw, 26, lost his job as a cook at a Hilton Hotel in New Orleans, where he lives, back in March just after the virus erupted in the United States. He says he’s applied for 35 jobs without any luck. His primary work experience is in restaurants, few of which are hiring.

Most of the available jobs he sees involve trucking or work on offshore oil rigs, which require certifications he can’t afford to obtain. McGraw has also worked with an advocacy group, Stand Up Louisiana, in support of extending jobless benefits.

“I didn’t ask for this — no one asked for this pandemic,” he said. “I am trying to play the cards I am dealt with, and I have a really bad hand.”

RELATED TOPICS:

DON'T MISS

This Classically Handsome Kitty Loves to Play with Anything That Rolls

DON'T MISS

Turbo Lag, Whale Tails, Widowmakers: Celebrating 50 Years of the Legendary Porsche 930

DON'T MISS

Fresno State Shows the Nation How a Peaceful Palestinian Protest is Done

DON'T MISS

Wired Wednesday: Digging Into Fresno’s Trash Hauling Fees

DON'T MISS

Fresno State Announces 2024 Undergraduate Deans’ Medalists

DON'T MISS

Duane Eddy, Twangy Guitar Hero of Early Rock, Dead at Age 86

DON'T MISS

Fresno State’s Randa Jarrar Dragged Out of Event Featuring Big Bang Theory’s Mayim Bialik

DON'T MISS

Trump Calls Judge ‘Crooked’ After Facing a Warning of Jail Time if He Violates a Trial Gag Order

DON'T MISS

Federal Reserve Says Interest Rates Will Stay at Two-Decade High Until Inflation Further Cools

DON'T MISS

House Passes Bill Expanding Antisemitism Definition Amid Campus Protests Over Gaza War

UP NEXT

Trump Calls Judge ‘Crooked’ After Facing a Warning of Jail Time if He Violates a Trial Gag Order

UP NEXT

Biden’s Historic Marijuana Shift Is His Latest Election Year Move for Young Voters

UP NEXT

The Latest | In Israel, Blinken Pushes Hamas to Agree on Gaza Cease-Fire Deal

UP NEXT

What Marijuana Reclassification Means for the United States

UP NEXT

Rep. Marjorie Taylor Greene Vows to Force a Vote on Ousting House Speaker Mike Johnson

UP NEXT

Protesters Clash at UCLA After Police Arrest 300 Pro-Palestinian Demonstrators in New York City

UP NEXT

Dems: We Will Save GOP Speaker Johnson’s Job if Republicans Try to Oust Him

UP NEXT

Hush Money Trial Enters 3rd Week, Begins With Gag Order Ruling and $9K Fine for Trump

UP NEXT

Planning for Potential Presidential Transition Underway by Biden Administration

UP NEXT

US Is Building a Pier off Gaza to Bring in Humanitarian Aid. Here’s How It Would Work.

Wired Wednesday: Digging Into Fresno’s Trash Hauling Fees

16 hours ago

Fresno State Announces 2024 Undergraduate Deans’ Medalists

16 hours ago

Duane Eddy, Twangy Guitar Hero of Early Rock, Dead at Age 86

17 hours ago

Fresno State’s Randa Jarrar Dragged Out of Event Featuring Big Bang Theory’s Mayim Bialik

17 hours ago

Trump Calls Judge ‘Crooked’ After Facing a Warning of Jail Time if He Violates a Trial Gag Order

17 hours ago

Federal Reserve Says Interest Rates Will Stay at Two-Decade High Until Inflation Further Cools

17 hours ago

House Passes Bill Expanding Antisemitism Definition Amid Campus Protests Over Gaza War

17 hours ago

Trump Awarded 36 Million More Trump Media Shares Worth $1.8 Billion

18 hours ago

Fresno Trustees Discuss Interim Superintendent Decision. When Will They Decide?

Local Education /

19 hours ago

Why Wheels on $10M Worth of Fresno Buses Don’t Go Round and Round

19 hours ago

This Classically Handsome Kitty Loves to Play with Anything That Rolls

This darling boy’s saucer-sized, soulful eyes are a purrfect reflection of this 7-month-old’s sweet heart. Atlas is ready to be the pr...
Animals /

3 hours ago

Animals /
3 hours ago

This Classically Handsome Kitty Loves to Play with Anything That Rolls

Octane Central: Porsche 930 Widowmaker
3 hours ago

Turbo Lag, Whale Tails, Widowmakers: Celebrating 50 Years of the Legendary Porsche 930

15 hours ago

Fresno State Shows the Nation How a Peaceful Palestinian Protest is Done

16 hours ago

Wired Wednesday: Digging Into Fresno’s Trash Hauling Fees

16 hours ago

Fresno State Announces 2024 Undergraduate Deans’ Medalists

17 hours ago

Duane Eddy, Twangy Guitar Hero of Early Rock, Dead at Age 86

17 hours ago

Fresno State’s Randa Jarrar Dragged Out of Event Featuring Big Bang Theory’s Mayim Bialik

17 hours ago

Trump Calls Judge ‘Crooked’ After Facing a Warning of Jail Time if He Violates a Trial Gag Order

MENU

CONNECT WITH US

Search

Send this to a friend