Applications for U.S. state unemployment benefits unexpectedly jumped last week to the highest since August and Americans increasingly moved to longer-term jobless aid. Both are troubling signs for a labor market whose recovery from the pandemic was already slowing. Initial jobless claims in regular state programs totaled 898,000 in the week ended Oct. 10, up 53,000 from the prior week, Labor Department data showed Thursday. On an unadjusted basis, the figure posted the largest one-week increase since July.
Continuing claims — or total Americans claiming ongoing unemployment assistance in those programs — fell 1.17 million to 10 million in the week ended Oct. 3.
Initial claims rose in more than half of U.S. states, pointing to broad-based headwinds for the labor market and the economy as virus cases pick up again and colder weather starts to curb demand for outdoor dining. The report may also reflect tens of thousands of recent job cuts at the nation’s airlines.