Unemployment Claims Jump Just Before Critical Aid Programs Are Set To Expire

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A «closed sign is seen amid the coronavirus pandemic in Los Angeles on Dec. 5. The number of people filing unemployment claims jumped last week as a surge in coronavirus cases grips the country.





Frederic J. Brown/AFP via Getty Images



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Frederic J. Brown/AFP via Getty Images



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The worsening picture comes as critical programs passed by Congress in the spring, including expanded unemployment benefits, are set to expire the day after Christmas for more than 13 million people.

Congress is rushing to clinch a deal before the end of the year as economists and policy makers, including Federal Reserve Chair Jerome Powell, urge lawmakers to act quickly.

«The failure of elected officials to agree to another round of economic relief legislation amounts to a kick in the teeth to millions of unemployed and struggling businesses, said Mark Hamrick, senior economic analyst for Bankrate.



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The weekly claims data have been plagued by reporting problems and are not as reliable as other economic indicators.

But the sharp jump in new applications for relief does point to a rise in layoffs as the spiraling pandemic forces new restrictions on business activity and makes nervous consumers wary of going out and spending money.

More than 221,000 new infections were reported on Wednesday. And more than 3,100 Americans died of COVID-19 that day.

• coronavirus pandemic


• US economy


• Unemployment