US Jobless Claims Spike to 286,000, Highest Since October
The number of Americans filing new claims for unemployment benefits unexpectedly rose last week, likely as a winter wave of COVID-19 infections disrupted business activity, which could constrain job growth this month.
Initial claims for state unemployment benefits increased to a seasonally adjusted 286,000 for the week ended Jan. 15 from 231,000 in the prior week, the Labor Department said on Thursday. Economists polled by Reuters had forecast 220,000 applications for the latest week.
The United States is reporting an average of 732,245 new coronavirus infections a day, according to a Reuters analysis of official data, in a winter surge driven by the Omicron variant. There are, however, signs that cases are starting to subside in some regions, including hard-hit New York.
Economists expect claims will start trending lower as infections decline. Claims have plunged from a record high of 6.149 million in early April 2020. Still, labor market conditions are tightening. – READ MORE
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