Coronavirus, renewed supplementary payments drive U.S. weekly jobless claims at high
The United States had seen an increased level of applicants filing for unemployment benefits last week. The surge in the country’s weekly jobless claims underscored a struggling labor market as the coronavirus pandemic takes a toll on restaurants and other business operations.
For the week ended Jan. 9, initial claims for state unemployment benefits jumped 181,000 to a seasonally adjusted 965,000. The reading came as the sharpest since late August, placing higher than the 795,000 increase predicted by analysts in a Reuters survey.
According to some economists, the reading released by the Labor Department could be attributed to the recent renewal of supplemental jobless benefits. This also brought in risks of further job losses in January as nonfarm payrolls declined in December.