Unemployment claims each week rise unexpectedly, at its highest level since early September

Unemployment claims rose unexpectedly last week as pandemic coronavirus disease puts pressure on the economy as lawmakers struggle to push through new government support, he said. the Labor Department on Thursday.

Unemployment benefit file holders for the first time rose to 885,000 in the week ending Dec. 12, mostly from the week of Sept. 5. Economists surveyed by Dow Jones expects the original claims to fall to 808,000.

Initial claims for the previous week were revised higher by 9,000 to 862,000.

These numbers “certainly illustrate the fragility of the labor market, especially now as the second resurgence of the coronavirus [is] leading to further business closures and further job losses, “Lindsey Piegza, chief economist at Stifel, told CNBC ‘s” Squawk Box. “

The recent rise in weekly jobless claims comes as the number of coronavirus cases continues to rise across the country.

More than 247,000 new diseases have been diagnosed in the U.S. along with more than 3,600 Covid-related deaths, according to data from Johns Hopkins University. Data from the Atlantic COVID Administration Project showed that 113,000 people were hospitalized with the virus.

Meanwhile, Congress is scrambling to push for new legislation to help people and businesses by the end of the year.

Congressional leaders on Wednesday closed in on a $ 900 billion package that would include direct payments to individuals. However, a measure would exclude liability protections for businesses as well as support for state and local governments.

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