US unemployment claims increase for the third week in a row

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SAN RAFAEL, CALIFORNIA – APRIL 02: A pedestrian walks by a now hiring sign at Ross Dress For Less store on April 02, 2021 in San Rafael, California. According to a report by the Bureau of Labor Statistics, the U.S. economy added 916,000 jobs in March and the unemployment rate dropped to 6 percent. Leisure and hospitality jobs led the way with 280,000 new jobs followed by restaurants with 176,000 jobs and construction with 110,000 new positions. (Photo by Justin Sullivan/Getty Images)

CHICAGO (NewsNation Now) — The number of Americans seeking unemployment benefits increased for the third week in a row to 362,000, a sign that coronavirus variants may be slowing the job market’s recovery.

The Labor Department said Thursday that jobless claims increased by 11,000 from the previous week. Since topping 900,000 in early January, applications had fallen fairly steadily as the economy bounced back from last year’s shutdowns. But they’ve risen along with coronavirus infections.

Claims have been rising, with economists blaming a range of factors besides coronavirus including wild fires in California and Hurricane Ida, which struck the Gulf Coast in late August and caused record flooding in New York and New Jersey in early September.

Claims have dropped from a record 6.149 million in early April 2020 but are still above the 200,000-250,000 range that is viewed as consistent with a healthy labor market.

America’s employers have rapidly increased their hiring since they slashed 22 million jobs in March and April 2020 as the coronavirus outbreak — and the shutdowns meant to contain it — brought economic activity to a near-standstill. Since then, the economy has recovered about 17 million jobs as the rollout of vaccines encouraged businesses to open and expand hours and Americans to return to bars, restaurants and hotels.

But hiring, which has averaged more than 585,000 jobs a month this year, slowed to just 235,000 in August as the delta variant disrupted the recovery. Restaurants and bars cut nearly 42,000 jobs last month as COVID-19 cases picked up, the first drop this year. Hiring is expected to pick up to more than 560,000 this month; the Labor Department issues the September jobs report on Oct. 8.

Altogether, 2.8 million Americans were receiving some type of jobless aid the week of Sept. 18, down by 18,000 from the week before. Earlier this month, the federal government stopped additional aid — including $300 a week on top of traditional state benefits — that was meant to ease the economic impact of the pandemic.

The Associated Press and Reuters contributed to this report.

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