Jobless claims trend higher with rising virus cases

New and continuing jobless claims in Michigan are trending higher amid rising coronavirus cases and temporary state restrictions slowing activity in some sectors of the economy.

New jobless claims in Michigan totaled 22,170 for the week ending Dec. 5. While that number is down slightly from the revised 22,965 new jobless claims the week before, continuing jobless claims and the state’s unemployment rate are rising again after months of improvement.

The U.S. Labor Department releases initial jobless claims each Thursday. Continuing claims numbers are a week behind, but the latest report shows they’re rising in Michigan.

Continuing jobless claims totaled 205,707 for the week ending Nov. 28, up significantly from the 159,707 continuing claims re

“It’s evident the labor market is still in crisis. The gap between now and when a vaccine is widely distributed looms large. There’s a lot of uncertainty ahead for the labor market going into the new year.”

ported the previous week. Meanwhile, the state’s unemployment rate edged upward from 3.7% to 4.78%.

Nationally, new jobless claims also rose last week to 853,000, the most since September and more than four times the pre- pandemic average, and evidence that companies are cutting jobs as virus cases rise and new restrictions are imposed.

Restaurants, bars and retailers all cut jobs in November, according to the

Labor Department.

In Michigan, temporary restrictions on in-person learning and inside dining at restaurants along with closings of casinos, stadiums, theaters and other public venues have been extended until Dec. 20.

“It’s evident the labor market is still in crisis,” said AnnElizabeth Konkel, an economist at the Indeed job search website. “The gap between now and when a vaccine is widely distributed looms large. There’s a lot of uncertainty ahead for

the labor market going into the new year.”

Members of Congress and the Trump administration are fighting over a roughly $900 billion relief package that could extend two unemployment programs into the spring, sparing about 9 million unemployed Americans from what would otherwise be deeper financial distress when the programs expire the day after Christmas.

A bipartisan group of senators has proposed to extend the supplemental aid for four months and add $300-a-week in federal jobless aid.

With a coronavirus vac

cine nearing approval, many economists are optimistic that the economy will rebound strongly next year. But most favor another federal financial relief package to support unemployed workers, small businesses, and state and local governments until then.

New confirmed virus cases are now topping 200,000 a day, up from only about 30,000 in the spring. And the average number of deaths each day in the past seven days has surpassed 2,000, roughly matching its peak in April.

— AnnElizabeth Konkel, economist at the Indeed job search website