Unemployment claims rose unexpectedly last week as the coronavirus pandemic continues to put pressure on the economy as lawmakers struggle to push for new government aid, the Labor Department said Thursday.
The number of first-time unemployment benefit applicants was 885,000 in the week ending Dec. 12, the highest since the week of Sept. 5. Economists surveyed by Dow Jones expected initial claims to drop to 808,000.
The previous week’s initial claims were reviewed above 9,000 to 862,000.
These figures “really show the fragility of the labor market, especially now as a second resurgence of coronavirus [is] causing further business closures and additional job losses, “Lindsey Piegza, Stifel’s chief economist, told CNBC’s” Squawk Box. “
The recent rise in weekly unemployment claims comes as the number of coronavirus cases continues to rise across the country.
According to data from Johns Hopkins University, more than 247,000 new infections were confirmed in the U.S. along with more than 3,600 Covid-related deaths. Data from the Atlantic COVID monitoring project showed a record 113,000 people hospitalized with the virus.
Meanwhile, Congress is vying to push through new legislation to help individuals and businesses before the end of the year.
Congress leaders on Wednesday closed a $ 900 billion package that would include direct payments to individuals. However, the measure would exclude corporate liability protections as well as aid to state and local governments.
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