Unemployment demands rose unexpectedly last week as the coronavirus epidemic continues to put pressure on the economy as lawmakers fight to pull new government subsidies, the Labor Department said on Thursday.
The number of unemployed benefit recipients for the first time was 885,000 in the week ending December 12, the most since the week of September 5th. Economists interviewed by Dow Jones expected first demands to fall to 808,000.
Initial claims for the previous week were adjusted 9000 to 862,000 higher.
These figures “really highlight the fragility of the labor market, especially now as the second rebirth of the coronavirus. [is] it will lead to the closure of more businesses and the loss of more jobs, ”Lindsey Piegza, Stifel’s chief economist, told CNBC’s“ Squawk Box ”.
The recent rise in weekly unemployment demands comes at a time when the number of coronavirus cases is steadily rising across the country.
According to Johns Hopkins University, more than 247,000 new infections have been confirmed in the United States, as well as more than 3,600 Covid-related deaths. According to data from the Atlantic COVID surveillance project, a record 113,000 people were hospitalized with the virus.
Meanwhile, Congress is working to create new legislation to support individuals and businesses before the end of the year.
Congress leaders closed a $ 900 billion package on Wednesday that would include direct payments to individuals. However, the measure would exclude the protection of corporate liability and support for state and local governments.
To subscribe CNBC PRO exclusive insight and analysis; and live workday programming from around the world.