Unemployment Benefit: US Applications Increase

Here's what we know about the new stimulus check 0:54

(CNN Business) -

Another 861,000 workers applied for unemployment benefits for the first time last week, according to seasonally adjusted data released by the Labor Department on Thursday.

That's about 100,000 more requests than economists had predicted and the highest number in a month.

It also represents an increase over the previous week, which in turn was revised up.

America's job recovery has really slowed, and last week's initial applications were four times higher than in the same period last year.

In just one month, a year has passed since the peak of applications for subsidies.

Last year, initial requests jumped to 3.3 million in the week ending March 21, before reaching a peak of 6.9 million the following week, when the pandemic forced the U.S. economy to shut down.

Almost a year later, the weekly numbers are much lower again.

However, they haven't had a significant improvement in months.

Weekly requests fell below 1 million in August, but their most recent adjusted low was 711,000.

This is a number several times higher than the pre-pandemic average.

Nearly 1.4 million Americans filed initial applications for unemployment benefits in the week ending February 13, including those through the states and the Pandemic Unemployment Assistance program.

Annotation: data not seasonally adjusted.

Source: Department of Labor.

Graphic: Tal Yellin, CNN.

When will the landscape change?

In addition to regular state applications, 516,299 Americans applied for subsidies through the Pandemic Unemployment Assistance program, which provides assistance to people such as the self-employed, temporary workers or

gig workers

.

This was a sharp increase from the previous week.

Added to that, first-time requests actually stood at 1.4 million last week with no seasonal adjustment.

advertising

Continuing claims for unemployment benefits, counting those filed for at least two consecutive weeks, stood at 4.5 million in the week ending February 6.

More than 18 million people received subsidies under various government programs in the week ending January 30.

The unemployment rate in the United States fell dramatically due to the partial reopening of the economy.

However, the pace of improvements actually slowed down in the fall and winter months.

So what's going to speed things up again?

Economists agree that the deployment of the vaccine, along with warmer weather that allows more outdoor activities, such as eating at restaurants, will boost employment and allow more workers to leave subsidies and return to the job market.

However, it is only February and much of the country is covered in snow.

Therefore, it seems likely that it will take until after the anniversary of the pandemic to have real improvements.