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New unemployment claims fall below 1 million for the first time in five months

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The number of workers filing jobless claims last week fell to 963,000.

New unemployment claims fell last week to 963,000, the Labor Department reported Thursday, the first time in months the figure has been less than 1 million.

An additional 488,622 laid-off workers filed for jobless aid under the new pandemic unemployment assistance program, created for those not traditionally eligible for unemployment benefits like the self-employed and gig workers.

Though the numbers are gradually falling, the report indicates workers are still being pushed out of their jobs at historic levels during the coronavirus pandemic.

New applications filed in state programs are still far above the previous record of 695,000 in 1982, fueling concerns that the economic recovery may not be fully under way.

In total, more than 25 million people are currently receiving jobless benefits, according to DOL.

Why it matters: Another week of elevated unemployment claims is likely to add more pressure on lawmakers to reach a deal on another coronavirus aid package. Despite nearly three weeks of negotiations, party leaders are no closer to a deal, and it’s likely the stalemate will drag into September.

A major sticking point in the talks is how much extra aid Congress should give to laid-off workers. President Donald Trump signed a bill in March that included an extra $600 per week in unemployment benefits, but that payment expired on July 31.

Democrats want to extend the extra jobless aid into 2021. But Republicans don’t want the benefit to continue at $600, arguing that it paid some workers more to be unemployed than they earned at their jobs and would encourage people not to return to work.

To prod negotiations along, Trump over the weekend signed an executive action that would offer jobless workers an extra $400 a week. But, the move would require states to opt in, implement a new system, and fund one-fourth of the aid. Governors of some states have complained that Trump’s plan would be too expensive or logistically impossible.

This blog originally appeared at Politico on August 13, 2020. Reprinted with permission.

About the Author: Rebecca Rainey is an employment and immigration reporter with POLITICO Pro and the author of the Morning Shift newsletter.


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