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Unemployment claims jumped last week as coronavirus cases surge nationwide.

Economy And Jobs,Jobless Claims,Unemployment Benefits

From the Left

Applications for unemployment benefits rose for the second week in a row last week, the latest sign that the nationwide surge in coronavirus cases is threatening to undermine the economic recovery.

More than 827,000 people filed first-time applications for state unemployment benefits last week, the Labor Department said Wednesday. That was up 78,000 from a week earlier, before adjusting for seasonal patterns, and more than 100,000 from the first week of November, when weekly filings hit their lowest level since pandemic-induced layoffs began last spring.

Another 312,000 people filed for benefits under the federal Pandemic Unemployment Assistance program, which covers freelancers, self-employed workers and others who don’t qualify for state benefits. And 4.5 million people are now receiving benefits under a separate program that extends payments during the pandemic, a total that has been rising as more people reach the end of their state benefits. Both those programs expire at the end of the year.

Unemployment filings have fallen substantially since last spring, when more than six million people a week were applying for benefits. But progress has stalled in recent months, and the data reported Wednesday suggests it could be going in reverse.

“I don’t think the report is cause for panic, but it certainly is concerning to see claims rise two week as in a row at a time when the level of claims is still above Great Recession peaks,” said Daniel Zhao, senior economist at the career site Glassdoor. He noted that unlike the previous week’s increase, which was concentrated in Louisiana, the latest report showed increases across the country.

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