First time weekly unemployment claims jumped 4% from the previous week, to 778,000, marking three consecutive weeks of increased claims since July, according to the Department of Labor report.
More than 20 million Americans continue to receive unemployment benefits, although 12 million are slated to lose the relief at the end of the year as coronavirus aid packages expire and no new federal assistance appears to be in the pipeline because of Republican stubbornness.
The lack of a supplemental relief bill could further weaken an American economy already showing signs of stress. While US consumer spending rose 0.5% in October, household incomes dropped 0.7%, according to Bloomberg.
Consumer spending increased 0.1 percentage points more than predicted, after increasing 1.2% in September, signalling a stronger than expected consumer market, but also one that is slowing down due to reduced cash available to Americans.
The surge in coronavirus cases also foretell a slowing economy in need of further government relief. States and localities have increased public health guidelines which require local businesses to shut down or limited operations, further stifling growth.