900,000 more Americans applied for unemployment benefits last week

The number of Americans claiming unemployment benefits for the first time remained high last week as an increase in COVID-19 infections and new restrictions to help curb the spread of the virus weighed on the recovery of the market. job.

Figures released Thursday by the Labor Department show that 900,000 Americans first filed for unemployment during the week ended Jan. 16, slightly lower than the 910,000 forecast by Refinitiv economists.

The number is almost four times the pre-crisis level, but is well below the high of nearly 7 million that was reached when the home orders were first issued in March. Nearly 70 million Americans, or about 40% of the workforce, have applied for unemployment benefits during the pandemic.

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The number of people who continue to receive unemployment benefits fell to 5.054 million, a decrease of about 127,000 from the previous week. The report shows that about 15.99 million Americans were receiving some sort of unemployment benefit until January 2.

Many more Americans are receiving unemployment assistance from two federal programs that Congress put in place with the passage of the CARES law in March: one extends assistance to the self-employed, to construction workers and others who are generally not eligible for benefits, and the other provides assistance to those who have exhausted their state allowances.

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“The current wave of the pandemic does not appear to be receding yet and the prospect of new, more transmissible variants increases the risk of an extended third wave,” said Daniel Zhao, senior economist at Glassdoor. “While the vaccine sheds light at the end of the tunnel, we are still a long way from a complete reopening of the economy that could lead to rehires and stem further layoffs.”

The federal government renewed these programs at the end of December with the passage of a $ 900 billion relief bill, which includes a supplementary unemployment benefit of $ 300 per week, a one-time stimulus check of $ 600 for most adults and new financing for a small business. rescue program.

Leading Democrats saw the relief package as the tip of the iceberg, and President Biden, which was inaugurated on Wednesday, unveiled a $ 1.9 trillion stimulus package that includes $ 20 billion for distribution vaccines, unemployment benefits extended to $ 400 per week until September and a third. stimulus check valued at $ 1,400.