Initial jobless claims for the week that ended Dec. 12 were up 23,000, hitting a high of 885,000 versus 853,000 expected, the U.S Department of Labor reported on Thursday (Dec. 17). The new numbers are roughly four times greater than new claims before the pandemic.
The previous week’s level was revised up by 9,000 from 853,000 to 862,000. Continuing claims for the week that ended Dec. 5 were 5.7 million, slightly more than the 5.757 million anticipated.
The total number of continued weeks claimed for benefits in all programs for the week ending Nov. 28 was 20.6 million, an increase of 1.6 million from the previous week. There were 1.78 million weekly claims filed for benefits in all programs in the comparable week in 2019.
“The recent increase in case counts suggests the labor market could slip even further in the winter months, as hinted at by the latest jobless claims report,” J.P. Morgan Economist Michael Feroli wrote in a recent note, per Yahoo! Finance. “Even with a vaccine and possibly more fiscal stimulus on the horizon, by this time next year, the labor market will likely fall short of anyone’s idea of full employment.”
The rise in unemployment follows the surge in the number of new coronavirus cases. Last week’s report ended seven consecutive weeks of new jobless claims lower than 800,000.
In August, new claims fell below one million, the first time since the pandemic started in March and closed workplaces and schools nationwide. For the week ending Aug. 8, initial claims were 963,000, down 228,000 from the prior week’s level. That DOL report ended a 20-week streak of new claims that totaled more than one million. Since the week ending March 20, more than 56 million Americans have filed new unemployment insurance claims.
We’re always on the lookout for opportunities to partner with innovators and disruptors.
Learn More