WASHINGTON: New applications for unemployment benefits in the US surged last week by 137,000, according to government data released Thursday, far higher than economists had been expecting.
The massive rebound was the biggest since March 28 in the early days of the coronavirus pandemic, and took the total number of initial claims to 853,000, the Labor Department reported.
Applications fell in the prior week which included the Thanksgiving holiday, and though economists had been expecting a rebound the consensus was for a much more modest increase.
Claims for special pandemic unemployment assistance jumped 139,000 in the week ended Dec 5.
For the week ended Nov 21, the holiday week, the total number of workers receiving some form of assistance, including from two pandemic emergency programmes, fell 1.1 million to 19 million, according to the report.
Those special programmes that provide extended benefits and help to workers who do not usually qualify for unemployment benefits, like gig workers, will expire by the end of the year unless lawmakers in Washington overcome their differences and agree on a new relief package.