First-time-filers for unemployment benefit claims slightly increased than expected last week as the labor department struggled to recover from the coronavirus pandemic.

The Labor Department said on Thursday that initial jobless claims for the week ending Sept. 19 came in at 870,000, which was adjusted for seasonal fluctuations.

Economists polled by Dow Jones expected first-time claims to stand at 850,000, a slight decreased from the previous week's 860,000. Without the adjustment, about 825,000 people filed last week, higher from the previous week's 796,000. 

More than six million people a week filed during the peak of the furloughs in the spring. This was when Congress approved $600 a week in supplemental benefits. It expired this summer.

"Bottom line, we have a mix of people going back to work because they are now greater incentivized to do so without the extra $600 per week and those that are still challenged in finding a job that matches their skills in this unfortunate pandemic landscape," Peter Boockvar, chief investment officer at Bleakley Advisory Group, said in a report.

The department noted that New York and Georgia had the biggest week-over-week increases in initial claims. 

The unemployment claims in New York jumped by more than 9,000 last week. In Georgia, first-time-filers of unemployment claims swell by more than 6,000.

Fed Chairman Jerome Powell called for additional financial assistance on Wednesday. Powell said they had come a long way pretty quickly, and that is great.

"But there's a long way to go. So I just would say we need to stay with it, all of us. The recovery will go faster if there's support coming both from Congress and from the Fed," Powell noted.

Evercore ISI analyst Dennis DeBusschere said that claims "missed expectations and moved up."

Meanwhile, reports said that Democrats would draft a new COVID-19 relief bill and looking to bring it for a vote before Oct. 2.

The possible $2.2 trillion bill would be lower than the $3.4 trillion HEROES Act, which the House passed in May.

The new legislation comes after Treasury Secretary Steven Mnuchin and House Speaker Nancy Pelosi agreed to restart the second stimulus bill's talks. Negotiations about a second stimulus bill have been stalled for months.

Recently, Senate Republicans unveiled a so-called "skinny bill." However, the GOP-backed bill fell short of the 60 votes needed to pass a procedural vote.

The GOP proposed bill comes with an amount of $650 billion, which is lower than the first legislation the Republicans and Democrats passed.

Many Americans are anxiously awaiting another stimulus check to bolster their tumbling finances. The lack of movement on a stimulus check has worried many Americans and millions remain unemployed, struggling to pay rent or mortgages, or unable to afford food for their families.

Republicans and Democrats have both signaled a willingness to send out a second round of checks. But the likelihood of passing a legislation on the next stimulus package has diminished as the standoff in Congress continues. 

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