New jobless claims rise for first time since March

The rise in weekly jobless claims comes when a $600 weekly federal aid payment for the jobless is set to expire at the end of this week.

The Labor Department said Thursday about 32 million people are receiving unemployment benefits, though that figure could include double-counting by some states. Some economists say the figure is likely closer to 25 million.

Last week’s pace of unemployment applications — the 18th consecutive week it has topped 1 million — was up from 1.3 million the previous week. Before the pandemic, the number of weekly applications had never exceeded 700,000.

An additional 975,000 applied for jobless aid under a separate program that has made self-employed and gig workers eligible for the first time. That figure isn’t adjusted for seasonal trends, so it’s reported separately.

The resurgence of confirmed viral cases across the country has forced some businesses to close a second time or to impose tighter restrictions on customers in response to state mandates. The resulting pullback in business activity has hindered job growth and likely forced additional layoffs.

The federal government’s $600 weekly benefit for laid-off workers — which is in addition to whatever jobless aid a state provides — is the last major source of economic help from the $2 trillion relief package that Congress approved in March. A small business lending program and one-time $1,200 payment have largely run their course.

Members of Congress are negotiating another aid package that might extend the $600 benefit.

The federal jobless aid has also helped buttress the overall economy. Unemployment aid accounted for 6% of all U.S. income in May, a greater share than even Social Security. Economists say it’s one reason retail spending rebounded as quickly as it did in May and June, helping fuel a modest economic rebound.

The Associated Press contributed to this report.