New applications for unemployment aid held nearly steady during the week of New Year’s, as extra $300 in weekly payments kicked in from the coronavirus aid package signed into law last month.
Weekly initial claims for jobless benefits from regular state programs, a proxy for layoffs, fell by 3,000 to a seasonally adjusted 787,000 in the week ended Jan. 2, the Labor Department said Thursday. The prior week’s figure was revised up by 3,000.
Unemployment claims have remained at high levels during the pandemic—holding at four times their pre-pandemic average at around 800,000 a week through the fall and into the winter. Claims peaked at nearly 7 million in the spring, when a majority of states issued stay at home orders early in the pandemic. The pre-pandemic peak was 695,000.
Mr. Trump signed a $900 billion Covid-19 relief bill on Dec. 27, which, in part, added a $300-a-week supplement for those receiving unemployment benefits and extended two pandemic-specific programs used by about 13 million people.
The increased payment on top of what is offered by states could have incentivized additional workers to apply. However, some may not have done so during the week between the Christmas and New Year’s holidays. Workers aren’t required to apply for benefit the week that they’re laid off. In addition, weekly jobless claims figures can be volatile during holiday periods because of challenges with seasonal adjustment.
