1.5 million more Americans filed for unemployment benefits last week.
New data from the U.S. Labor Department also more than 700,000 workers who are self-employed, or otherwise ineligible for state assistance, filed new claims for federal aid under the Pandemic Unemployment Assistance program.
Weekly first-time claims have fallen for the 10th straight week, but overall, unemployment in the U.S. remains at levels last seen at the end of the Great Depression.
Around 21 million Americans remain unemployed because of the pandemic.
U.S. Federal Reserve officials predict unemployment will finish the year around 9.3% and expect it to remain elevated for years.
Congress may continue the extra $600 a week in federal unemployment benefits for another six months. It's due to expire July 31. The Trump administration opposes extending it beyond that deadline.
Republicans members of Congress argue that an extension will discourage people from going back to work. When added to the $375 in state benefits, the extra federal money means some Americans are receiving more money while unemployed than they earned from their old jobs.
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