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More people applied for unemployment benefits last week, the first increase in three weeks. Still, the broader trend points to a slowly healing jobs market.
Heavily indebted states could get immediate relief from the Obama administration under a plan to temporarily suspend interest payments they owe the federal government for borrowing money to cover the soaring cost of unemployment benefits.
Senior lawmakers said on Sunday they were optimistic about striking a deal to extend Bush-era tax cuts for all taxpayers and continue emergency jobless aid for millions of long-term unemployed Americans.
Extended unemployment benefits for nearly 2 million Americans begin to run out Wednesday, cutting off a steady stream of income and guaranteeing a dismal holiday season for people already struggling with bills they cannot pay.
With one in every eight workers unemployed and empty state coffers,
California is borrowing billions of dollars from the federal government
to pay unemployment insurance.
The state is borrowing $40 million a day from the federal government to provide assistance to jobless workers, but has resisted changing the formulas it uses to determine and fund those benefits.California's fund for paying unemployment insurance is broke.