Unemployment claims rose less than expected last week as employers measured a winter spike in Covid-19 cases against expected relief from an impending $ 900 billion stimulus package. come, the Labor Department said on Wednesday.
The number of unemployment benefit registrants for the first time fell to 803,000 in the week to the end of December 19. Economists surveyed by Dow Jones expected initial claims to rise to 888,000.
Initial entries for the previous week were revised higher by 7,000 to 892,000, the highest print since early September.
Unemployment claims, a substitute for the number of people receiving benefits through regular state programs, fell to 5.3 million that was changed quarterly in the week ending 12 December from 5.5 million in the previous week that is, according to the Department of Labor.
In total, 20.4 million Americans were receiving some unemployment benefits through Dec. 5, the report said.
The latest jobless claims report came amid a major rift between President Donald Trump and U.S. lawmakers.
Earlier this week, Congress passed a much-anticipated, $ 900 billion veto-proof bulk relief package. The bill includes $ 600 incentive studies for most individuals and their dependents, $ 300-per-week federal unemployment benefits and about $ 320 billion in business relief.
Democrats say the package is a step in the right direction but will call for more help after President Joe Biden takes office on Jan. 20.
“While we already hear mourners criticizing construction and combination, the main line is that they are dropping $ 900 billion of spending into households over the coming months. , and that will really support the economy, “said Nathan Sheets, chief economist at PGIM Income – based, he said in a note Tuesday about the latest legislation.
Volunteers load cars with turkeys and other food aid for Walt Disney World hunting members and others at a food distribution event on Dec. 12, 2020 in Orlando, Florida.
Paul Hennessy | NurPhoto | Getty Images
But in a shocking tweet Tuesday night, Trump questioned whether he would sign the bill, the result of months of talks with his own Finance Secretary, Steven Mnuchin.
Trump called Covid’s relief bill an inappropriate “disgrace” and urged transportation leaders to make major preparations for the move, including more direct payments to individuals and families.
The U.S. records at least 215,400 new Covid-19 cases and at least 2,600 virus-related deaths per day, based on a seven-day average calculated by CNBC using Johns Hopkins University data.
Data from the Atlantic COVID Administration Project showed that 117,000 people were hospitalized with the virus.
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