New jobless claims rise for the first time since March, just as $600 benefit is ending
The number of Americans seeking jobless benefits increased last week for the first time in months.
More than 1.4 million filed new unemployment claims, an increase from 1.3 million the week before, according to the Labor Department. It marks the first increase since late March and comes as the COVID-19 crisis worsens in much of the country and as unemployed Americans are set to lose some federal benefits.
A staggering 6.9 million Americans filed unemployment claims during the week ending March 28, when the pandemic was intensifying and coronavirus-related shutdowns were spreading across the country. Since then, weekly claims have stayed in the millions but have steadily decreased — until now.
The coronavirus situation is worsening in much of the country.
Many states are seeing surges in infections, forcing some to backtrack on reopening steps and making it difficult or impossible for residents to go back to work.
The biggest increases in claims during the week of July 11 were in Florida, Georgia and California, per the Labor Department — all of which are seeing increases in COVID-19 cases and are now among the hardest hit states in the country.
All three cited layoffs or COVID-19 as reasons for unemployment jumps, the Labor Department says.
The increase in jobless claims also comes as the $600 weekly unemployment supplement from the federal government is set to expire.
The payments are available to everyone receiving unemployment benefits and are in addition to payments from the state under the CARES Act. More than 25 million Americans receive these payments, the progressive think tank The Century Foundation estimated in early July.
They’re set to expire July 31. But, because benefit weeks end on Saturdays or Sundays and July 31 is a Friday, this is the last week the payments will go out, CNN reports.
Democrats have pushed for the payments to be extended but some Republicans have argued they “disincentivize” people from going back to work.
Americans who have lost their jobs say the extra money helps them pay rent, buy medicine and feed their families as state benefits typically only cover about 40% of income, CNN reports.
Lawmakers are discussing details of another coronavirus relief package and a new Trump administration plan could include a “70% wage replacement,” meaning the extra payments would decrease to about $200 a week, The Sacramento Bee reports.
Republicans previously tried to put a stop to the payments but held off as unemployment numbers remained high.
In June, Labor Secretary Eugene Scalia said the benefits were once the right thing to do but “are no longer needed,” McClatchy News previously reported.
Unemployment numbers are still high. In July of last year, weekly claims ranged from 211,000 to 217,000, according to the Labor Department.
The unemployment rate is also higher than it’s been in recent decades — hitting 14.7% in April before dipping to 13.3% in May and 11.1% in June.
This story was originally published July 23, 2020 at 12:08 PM with the headline "New jobless claims rise for the first time since March, just as $600 benefit is ending."
