Jobless claims fall slightly as another 847,000 Americans apply for unemployment aid
Economists expected 875,000 Americans to have filed for unemployment benefits last week
The number of Americans filing for state unemployment benefits edged lower but remained elevated last week as the labor market struggles to recover from a surge in COVID-19 infections nationwide and new restrictions to help curb the spread of the virus.
Figures released Thursday by the Labor Department show 847,000 Americans filed first-time jobless claims in the week ended Jan. 23, slightly lower than the 875,000 forecast by Refinitiv economists.
The number is nearly four times the pre-crisis level but is well below the peak of almost 7 million that was reached when stay-at-home orders were first issued in March. Almost 70 million Americans, or about 40% of the labor force, have filed for unemployment benefits during the pandemic.
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The number of people who are continuing to receive unemployment benefits fell to 4.77 million, a decline of about 203,000 from the previous week. The report shows that roughly 18.28 million Americans were receiving some kind of jobless benefit through Jan. 9, an increase of 2.29 million from the previous week.
Many more Americans are receiving jobless aid from two federal programs that Congress established with the passage of the CARES Act in March: One extends aid to self-employed individuals, gig workers and others who typically aren't eligible to receive benefits, and the other provides aid to those who have exhausted their state benefits.
The federal government renewed those programs at the end of December with the passage of a $900 billion relief act, which includes a supplemental $300-a-week jobless benefit, a one-time $600 stimulus check for most adults and new funding for a small business rescue program.
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Top Democrats saw the relief package as the tip of the iceberg, and President Biden has unveiled a $1.9 trillion stimulus plan that includes $20 billion for vaccine distribution, extended unemployment benefits at $400 a week through September and a third stimulus check worth $1,400.
"The third wave of the pandemic is showing signs of slowing, but it's still much too early to call this current wave of the pandemic over, especially with the prospect of new, more transmissible variants on the horizon," said Glassdoor senior economist Daniel Zhao. "Getting the pandemic under control and accelerating vaccine distribution are the best economic stimulus that the new Biden Administration could provide."