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When workers can use unemployment benefits to cover their basic needs, policy expert Alix Gould-Werth says they’re able to find better paying jobs.
The 853,000 new applications are evidence that some companies are cutting more jobs as new virus cases spiral higher.
The number of Americans applying for unemployment benefits fell last week to a still-high 712,000.
Instead of calculating PUA benefits based on people’s income, many states have just been paying the minimum benefit.
In 29 of 41 states that reported data, people in receipt of pandemic assistance benefits were being paid below the federal poverty line.
The Labor Department’s report Wednesday said jobless claims climbed from 748,000 the week before.
It’s the first increase in five weeks and a sign that the resurgent viral outbreak is likely slowing the economy.
In just 38 days, 12 million jobless workers will lose their benefits. Talks on another relief bill have stalled in Congress.
The figures coincide with a sharp resurgence in confirmed viral infections to an all-time high above 120,000 a day.
No state lets people stay on unemployment benefits for more than 26 weeks.