The latest weekly report was the second to be released after the Labor Department changed its seasonal adjustment formula which it said would "more accurately track" the data given the large fluctuations.
Initial US jobless claims were unchanged over the most recent week although secondary claims did edged higher, with some economists saying that the labour market had "stalled".
The latest number outpaced with economists' expectations for 850,000 filings and was still well above the pre-pandemic record of 695,000 claims in a single week, as well as the Great Recession's peak of 665,000.
Thus, combined regular and PUA claims now stood at 27.8m, against 25.7m in early August, he pointed out. For the comparable week in 2019, fewer than 1.6 million were collecting jobless benefits.
"Layoffs remain widespread and the labor market remains in a fragile place at a critical juncture", said Nancy Vanden Houten, lead USA economist at Oxford Economics in NY. "The risk now comes from another round of virus outbreaks in coming weeks".
"The advance number of actual initial claims under state programs, unadjusted, totalled 857,148 in the week ending September 5, an increase of 20,140 (or 2.4%) from the previous week".
Ian Shepherdson, chief economist at Pantheon Macroeconomics, said Thursday's figures showed that the U.S. labour market had "stalled". Until a month ago, each subsequent week had seen claims decline. Jobless applications for self-employed people have steadily risen over the last month.
That said, the headline number only counts claims for regular benefits that not everyone who lost their livelihood due to the pandemic has access to.
Meanwhile, 13.4 million American workers filed claims for unemployment insurance for at least two weeks in a row.
Over the last 25 weeks, the ODJFS has distributed more than $6.3 billion in unemployment compensation payments to more the 799,000 Ohioans.