Texas’ first-time jobless claims rise to highest total in a month

First-time claims for unemployment benefits in Texas jumped to the highest level in a month, the Labor Department reported Thursday.

Weekly claims, which have trended down in Texas in recent weeks, climbed by more than 12,000 from the previous week to nearly 44,000. Nationally, first-time claims fell by 3,000 to 787,000.

Jobless claims in Bexar County crossed 2,000 in the week ending Dec. 26 — the second time in four weeks that has happened.

Unemployment claims have been historically high during the pandemic — three to four times their pre-pandemic average. First-time claims nationally peaked at nearly 7 million in the spring, when most states issued stay-at-home orders early in the pandemic.

In Texas, first-time claims peaked at more than 300,000 in the spring.

After months of stalled negotiations Congress agreed on a $900 billion COVID-19 relief bill Dec. 27 that in part added a $300-a-week supplement for those receiving unemployment benefits.

Economists have warned of more layoffs as the surge in COVID-19 infections slowed the economy and business activity. In the Houston area, new restrictions were placed on businesses this week as COVID-19 patients occupied more that 15 percent of the hospital beds in the region for seven consecutive days.

Restaurant capacity was cut to 50 percent from 75 percent, and bars were ordered closed. Hospitals must curtail some elective surgeries.

With a vaccine being distributed, economists are expecting hiring to rebound, but improvement likely won’t come until the third or fourth quarter.

Mark Hamrick, a senior economic analyst for Bankrate, a personal finance website, said the December employment report, scheduled for release today, will likely show continued weakness in the labor market.

“The forthcoming monthly employment report is expected to mark the weakest gauge of hiring since the economic recovery began last year,” Hamrick said. “In so many ways, we look forward to healing in the coming months after the peak of the pandemic, administration of vaccines, a quieting of political discord and reopening of the economy.”