The number of people filing for unemployment benefits last week was higher than expected, raising concerns about the state of the economy as lawmakers struggle to move forward on a new coronavirus incentive package.
The Department of Labor said initial unemployment claims for the week ending August 15 came to 1,106 million. Economists surveyed by Dow Jones expected a total of 923,000. Initial claims for the previous week were also revised higher by 8,000 to 971,000.
“The modest jump is a strong reminder that claims are likely to encounter some turbulence if they fall instead of slipping in for a soft landing,” said Daniel Zhao, senior economist at Glassdoor.
Last week’s spike came into play as Democrats and Republicans struggled to move forward on a new coronavirus incentive bill.
Democratic lawmakers want to keep an additional $ 600-a-week unemployment benefit included in previous aid packages. Earlier this week, more than 100 House Democrats called on Second Chamber member Nancy Pelosi, D-Calif., To pass a smaller bill that would reinstate the additional benefits. Republicans, meanwhile, have indicated they want to expand the additional benefit at a lower rate.
“It’s been four weeks without the benefits of the $ 600 / week CARES Act for tens of millions of unemployed Americans,” said Zhao of Glassdoor. “While a handful of states are approved to pay out the new benefits of $ 300 / week, it remains unclear how quickly the benefits will be able to flow to unemployed Americans who are already facing an unsteady recovery.”
Continued claims, which refer to those receiving at least two straight weeks of unemployment benefits, have dropped by 636,000 to 14,844 million in the week ending August 8th.
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