US new jobless claims back above 1 million

Initial jobless claims rose last week, underscoring the fragility of the US economy during the novel coronavirus pandemic, as Congress debates a new stimulus bill.

More than 1.1 million people filed for jobless benefits for the week ended Aug 15, up 135,000 from the prior week, the US Labor Department reported Thursday.

Economists surveyed by Dow Jones expected 923,000 new claims to be filed.

"The number of individuals claiming benefits remains extraordinarily high — more than twice the peak of the Great Recession — underscoring that the labor market is a long way from being healthy," said Nancy Vanden Houten, lead economist at Oxford Economics, in a research note to investors.

Last week, initial unemployment claims fell below 1 million for the first time in 21 weeks. The Labor Department this week revised the total up by 8,000 to 971,000.

The number of workers filing first-time unemployment claims peaked at about 7 million in March during the worst of the COVID-19 pandemic.

The economy shut down in March as governors ordered stores, restaurants, bars, gyms, theaters and many schools to close as part of the effort to limit the spread of the virus.

Prior to the shutdowns, the unemployment was rate was 3.5 percent — near a record low.

The latest government figures show the unemployment rate dropped to 10.2 percent from 10.6 percent.

US companies hired about 9.3 million workers in the last three months, the Labor Department said.

But the hiring hasn't replaced 50 percent of the 22 million jobs lost in March and April.

The Labor Department's four-week moving average of first-time claims — a less-volatile measure because it evens out spikes — fell to 1,175,850, a decline of 79,000 from the previous week.