Virus-era jobless aid applications top 36 million

WASHINGTON — Nearly 3 million laid-off workers applied for U.S. unemployment benefits last week as the viral outbreak led more companies to slash jobs even though most states have begun to let some businesses reopen under certain restrictions.

The wave of layoffs may not subside until Congress can agree on providing rescue aid for financially desperate state and local governments as well as further help for households. Republicans and the Trump administration are locked in a standoff with Democrats, who have proposed trillions more in aid beyond the nearly $3 trillion already allocated to individuals and businesses. Republican leaders say they want to first see how previous aid affects the economy and have expressed skepticism about approving much more spending now.

Roughly 36 million people have now filed for jobless aid in the two months since the coronavirus first forced millions of businesses to close their doors and shrink their workforces, the Labor Department said Thursday. An additional 842,000 people applied for aid last week through a separate federal program set up for the self-employed and gig workers.

All told, the figures point to a job market gripped by its worst crisis in decades and an economy that is sinking into a severe downturn. The report suggests the tentative reopening of some businesses in many states has done little to reverse the flow of mass layoffs.