Weekly Applications For Unemployment Benefits In The US Increase Amid Omicron Wave

The number of Americans filing new jobless claims rose unexpectedly last week, likely as a winter wave of Covid-19 infections hit business activity, potentially limiting job growth in the first month of this year. anus.

Initial claims for state jobless benefits rose to a seasonally adjusted 286,000 in the week ended Jan. 15, up from 231,000 the previous week, the Labor Department reported Thursday. Economists polled by Reuters had expected 220,000 applications for the latest week.

The United States is seeing an average of 732,245 new coronavirus infections a day, according to a Reuters analysis of official data, in a winter surge fueled by the omicron variant. However, there are signs that cases are beginning to abate in some regions, including hard-hit New York.

Economists expect orders to begin to decline as infections subside. Claims are down from an all-time high of 6.14 million in early April 2020. Still, labor market conditions are tightening.

Employers are desperate to find workers, with 10.6 million job openings at the end of November. The unemployment rate is at its lowest point in 22 months, 3.9%, indicating that the labor market is at or near peak employment.

The claims data covers the period during which the government surveyed businesses for the nonfarm payrolls component of the January employment report. Applications are up from mid-December.

Labor shortages and disruptions caused by omicron through absenteeism, downsizing operations, or temporary business closures could keep payroll growth moderate this month.

The economy added 199,000 jobs in December, the fewest in a year. The workforce is about 2.2 million fewer people than it was before the pandemic.