Another 900,000 Americans Filed For Unemployment Last Week As Biden Preps Major Stimulus Push

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TOPLINE

Another 900,000 Americans filed new claims for state unemployment benefits (on a seasonally adjusted basis) during the week before President Biden took office, slightly fewer than what economists were expecting and 26,000 fewer than the previous week, but still stubbornly elevated as the new president pushes forward on new coronavirus and economic relief plans.

KEY FACTS

Claims had surged to 965,000 the prior week—their highest level since August, according to data released by the Labor Department. 

The recent uptick in claims is an indication that the course of the virus, which shows no signs of slowing yet as American deaths top 400,000, is continuing to damage the fragile labor market. 

Glassdoor senior economist Daniel Zhao said that the surge “was likely due to a combination of larger-than-expected seasonal and pandemic-induced layoffs, which are now slackening,” adding that the labor market will be “unable to progress further as long as COVID-19 remains in the driver’s seat.”

Biden’s $1.9 trillion relief plan would extend boosted federal unemployment benefits past March (when they are currently slated to expire) and provide other direct aid to American families, but it could be weeks before Congress passes the a comprehensive relief bill.

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