• Funding
  • Investing
  • Lending
  • Insurance
  • Banking
  • Wealth
  • Fintech
  • Venture
  • Crypto
Subscribe
No Result
View All Result
  • Equity Funding
  • Stocks
  • Mutual Funds
  • Credit Cards
  • Loans
  • Insurances
  • Savings
  • Crypto Trading
Home News Feed Personal Finance

1.4 million American workers apply for unemployment benefits, as relief bill negotiations drag on

CNBC NewsbyCNBC News
December 29, 2020

A person wearing a protective mask walks past a store for lease in San Francisco, Calif., on Dec. 8, 2020.

David Paul Morris/Bloomberg via Getty Images

Worsening outlook

Together, initial claims are at their highest point since mid-September.

“[The] rebound signals things aren’t just stagnating, they’re worsening,” Daniel Zhao, an economist at Glassdoor, a job and recruiting site, said.

Nine months into the crisis, the volume of initial claims eclipses any pre-pandemic record.

When stripping out data for the Pandemic Unemployment Assistance program, which was created in March by the CARES Act relief law, claims for state benefits are still higher than all but the worst week of the Great Recession.

‘Resurgent virus’

“Layoffs appear to be rising, consistent with the resurgent virus,” Heidi Shierholz, director of policy at the Economic Policy Institute, a left-leaning think tank, and former Labor Department chief economist, wrote Thursday in an analysis.

The U.S. recorded 3,124 new Covid-19 deaths on Wednesday, the deadliest single-day tally of the pandemic so far, according to a CNBC analysis of Johns Hopkins University data.

States like California have implemented new lockdown measures and stay-at-home orders to contain the outbreak.

Unemployment benefits generally replace half of a worker’s lost wages. However, some workers get much less of a wage replacement due to weekly caps on aid amounts, which vary widely among states. Six states — Alabama, Arizona, Florida, Louisiana, Mississippi and Tennessee — cap their unemployment benefits at a level below the country’s $7.25 hourly minimum wage.

Roughly 19 million Americans were collecting unemployment benefits at the end of November.

Multiple layoffs

Evidence suggests most new applications for unemployment benefits are coming from workers who have been laid off multiple times during the Covid pandemic.

Such claims accounted for 80% of all initial claims in California during the last week in October, according to a recent analysis published by the California Policy Lab. The U.S. Labor Department doesn’t report such figures for the whole country.

“It’s hard to know if these folks are applying for a second (or even third) time, but it’s very likely,” Eliza Forsythe, an assistant professor and labor economist at the University of Illinois, said of nationwide claims data.

Workers who re-enter the unemployment system essentially pick up where they left off, meaning they have fewer weeks of assistance available.

Repeat claims make it difficult to determine who may soon exhaust benefits, Forsythe said.

While the high level of unemployment claims is concerning, the extent to which Thanksgiving influenced last week’s spike is unclear, she said. Workers who would have otherwise filed during the holiday week may have been pushed to the following week.

“I’d like to see another week of data before feeling comfortable saying that claims are rising,” she said.

Read The Original Article on CNBC News

Related Topics

Personal Finance

Powerball surges to $730 million. Do this first if you win

Stocks making the biggest moves midday: Poshmark, JPMorgan, Wells Fargo, Zoom, Spotify & more

Prev Next

You May Like

Personal Finance

Powerball surges to $730 million. Do this first if you win

Stocks making the biggest moves midday: Poshmark, JPMorgan, Wells Fargo, Zoom, Spotify & more

Bitcoin

Donald Trump Banned From Twitter in Final Days of Presidency

Investing

Fintech start-up SoFi to go public via SPAC backed by Chamath Palihapitiya

Financial News

Stock Market

DOJ seeks to block Visa’s $5.3 billion acquisition of start-up Plaid over antitrust concerns

CNBC News
by CNBC News
Wealth

Watch NBA star Steph Curry give Bill Gates a job interview

CNBC News
by CNBC News
Personal Finance

Still have money in your flex spending account? Here’s how you can spend it down

CNBC News
by CNBC News
Personal Finance

Easy and elegant cocktail recipes for celebrating the holidays at home

CNBC News
by CNBC News
Investing

Walgreens drops 9% to lead drug store stocks lower after Amazon launches pharmacy business

CNBC News
by CNBC News
Stock Market

S&P 500 and Nasdaq rise as investors buy tech shares beaten up this week, Dow closes flat

CNBC News
by CNBC News
Personal Finance

Tim Ferriss was ‘fascinated by infomercials’ as a kid and would stay up late analyzing them

CNBC News
by CNBC News
Blockchain News

IMF Believes Central Banks Need Strong Legal Frameworks for CBDCs to Work

Blockchain News
by Blockchain News
Load More

© 2020, FinanceLane

Home | Contact | Terms and Conditions | Disclaimer | Privacy Policy

  • Home
  • News Feed
    • Equity Funding
    • Debt Funding
    • Crowdfunding
    • Real Estate Funding
  • Investing
    • Stocks
    • Bonds
    • Mutual Funds
    • Private Equity
    • Merging & Acquisition
    • Real Estate
  • Lending
    • Personal Loan
    • Business Loan
    • Credit Card
    • Microfinance
    • Peer-to-Peer Lending
  • Insurance
    • Life Insurance
    • Auto Insurance
    • Education Insurance
    • Health Insurance
  • Banking
    • Business Banking
    • Payments Bank
    • Investment Banking
    • Individual Banking
  • Wealth
    • Earning
    • Savings
    • Investments
    • Budgetting
    • Credit Management
    • Tax Planning
    • Retirement
  • Fintech
    • Alternative Financing
    • Payments
    • Asset Management
    • Digital Banks
    • Softwares
  • Venture
    • Startup Ecosystem
    • Merging & Acquisition
    • Equity Investing
    • Franchising
    • Business Offers
  • Fintech
    • Alternative Financing
    • Asset Management
    • Digital Banks
    • Softwares
    • Payments
  • Crypto
    • Crypto Investing
    • Crypto Trading
    • Crypto Coins
    • Bitcoin
    • Blockchain
    • DAPP
  • Subscribe
  • Contact
  • Login

© 2020 FinanceLane - Terms and Conditions | Disclaimer | Privacy Policy

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

*By registering into our website, you agree to the Terms & Conditions and Privacy Policy.
All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

← Bipartisan Covid relief plan includes more PPP, plus tax deductions for small businesses ← ‘We have no more savings’: New York City street vendors get over $2 million in help
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.