Jobless claims rise as cutoff of extra $600 benefit nears

WASHINGTON — The nation got another dose of bad economic news Thursday as the number of laid-off workers seeking jobless benefits rose for the first time since late March.

And an extra $600 in weekly unemployment benefits, provided by the federal government on top of whatever assistance states provide, is set to expire July 31, though this is the last week recipients will get the extra funds. It is the last major source of economic help from the $2 trillion relief package that Congress approved in March. A small business lending program and one-time $1,200 payment have largely run their course.

With the count of U.S. infections passing 4 million and the aid ending, nearly 30 million unemployed people could struggle to pay rent, utilities or other bills.

More than 1.4 million people applied for jobless benefits last week, the Labor Department said Thursday, up from 1.3 million the previous week. That is the first increase since March and 18th straight week that it has topped 1 million. Before the pandemic, applications had never exceeded 700,000.

The news sent stocks slumping, with the S&P 500 recording its worst loss in nearly four weeks.

Analysts say the economy can’t improve until authorities can control the spread of the virus.

Adm. Brett Giroir, a member of the Trump administration’s coronavirus task force, suggested another shutdown might be necessary. He noted that nearly universal mask-wearing, sharp restrictions on restaurant occupancy and shutting down bars were nearly as effective in controlling the virus as another shutdown of all nonessential businesses.

“Now, if you don’t do that, and people don’t achieve those goals, particularly mask-wearing, there may be no alternative,” Giroir said on MSNBC.