Jobless Claims Rise to 885,000

Applications for U.S. state unemployment benefits unexpectedly jumped to the highest level in three months, suggesting the labor market’s recovery is faltering amid the surge in Covid-19 cases and widening business restrictions.

Initial jobless claims in regular state programs rose by 23,000 to 885,000 in the week ended Dec. 12, Labor Department data showed Thursday. On an unadjusted basis, the figure fell by about 21,000.

Continuing claims for state programs declined by 273,000 to 5.51 million in the week ended Dec. 5. That figure roughly approximates the number of people...

Nearly 900,000 workers applied for jobless benefits last week, extending recent increases in another sign the economy is entering a winter slowdown.

Unemployment claims rose to 885,000 from 862,000 a week earlier, the Labor Department said Thursday.

More broadly, claims are down sharply from a peak of nearly 7 million in March, but the four-week moving average, which smooths out weekly volatility, recently increased after trending downward since the spring. The weekly figures can be volatile around the holidays due to seasonal-adjustment issues.

“The next few months will be pretty...