US unemployment claims jump as virus surge takes toll
More than 19 million Americans are dependent on some type of unemployment benefits
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.The number of new claims for unemployment assistance in the US jumped last week to 853,000, as companies cut jobs amid surging cases of the coronavirus.
Data released by the Labor Department shows applications increasing by more than 19 per cent from the previous week’s total of 716,000. The pre-pandemic figure prior to March was approximately 225,000 new applications per week.
The total number of people receiving state-provided unemployment aid rose for the first time in three months to 5.8 million from 5.5 million, suggesting that companies have pulled back on hiring.
More than 19 million people are dependent on some type of unemployment benefits, and unless progress is made in Congress over another relief bill, nearly half will lose that aid in just two weeks.
As new infections, hospitalisations, and deaths from Covid-19 spiral out of control, any sign of a quick economic recovery seems to be derailing with both a weakening job market and consumer confidence.
Retailers hoping for a boost from holiday shopping are so far disappointed with credit and debit card data showing sales down on previous years. An increase in online spending has not offset the steep decline in spending in physical stores.
In November, employers dramatically scaled back hiring, adding just 245,000 jobs. This marked the fifth monthly drop in a row and the fewest new hires since April at the height of the first wave of the pandemic.
While there were sharp jumps in unemployment claims in states that have imposed strict rules on businesses to try and curb the spread of the coronavirus, this was also true in some states that have not.
California, which has imposed tight restrictions on social gatherings and business operations, saw a jump of 47,000 new claims, whereas Texas, which has not imposed new restrictions, saw a weekly jump from 20,000 to 45,000.
While some of the increase might be attributable to there being fewer applications over the Thanksgiving holiday period, the increase is still more than expected.
The latest figures have in excess of 200,000 confirmed new cases of Covid-19 every day. The initial outbreak in March and April saw a peak of 36,000, and the summer surge topped out at 75,000.
Wednesday saw a new record of 3,055 officially recorded deaths in a single day.
There have now been a total of 15.5 million confirmed cases of Covid-19 and in excess of 290,000 deaths. By the new year, the Centres for Disease Control and Prevention forecasts that the total number of deaths could reach 362,000.
With reporting from the Associated Press
Subscribe to Independent Premium to bookmark this article
Want to bookmark your favourite articles and stories to read or reference later? Start your Independent Premium subscription today.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments