Unemployment claims increased unexpectedly

Several CEOs ask Biden to stop unemployment checks 0:54

(CNN Business) -

Unemployment benefit claims spiked unexpectedly last week.

The increase marks the first increase in initial applications since late April.

Another 412,000 workers applied for benefits for the first time in the week ending June 12, adjusted for seasonal changes, the Labor Department said Thursday.

Since early May, weekly claims had set new pandemic-era lows each week, and economists polled by Refinitiv had expected another low for Thursday's report.

The number of claims under the Pandemic Unemployment Assistance program, which is not adjusted for seasonality, also rose to 118,025 claims.

The United States Congress established the program to provide assistance to those ineligible for regular state benefits, such as the self-employed, during the pandemic.

Several CEOs ask Biden to stop unemployment checks 0:54

The context

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After all, the job market has improved in recent months and weekly claims for regular and pandemic benefits have finally dropped below a million.

But the increase comes at a peculiar time when several states are ending pandemic benefit programs before they officially expire in September.

"It is difficult to control the effect of the termination of federal programs on complainant behavior," AnnElizabeth Konkel, an economist at Indeed Hiring Lab, said in emailed comments.

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"What we do know is that in states where federal benefits are imminently ending, job search activity on Indeed has not skyrocketed relative to the national trend," he said.

Continuing claims, which count those who have claimed benefits for at least two weeks in a row, rose slightly to 3.5 million, in the week ending June 5, adjusted for seasonal variations.

Unemployment in the US Work