US jobless claims fall to 260,000 after four weeks
By Ishika Dangayach on Jan 27, 2022 | 03:37 AM IST
• The 4-week moving average edge up to 247,000
• The advance seasonally adjusted insured unemployment rate is 1.2 %
The number of new unemployment benefit claims filed in the United States fell to 260,000 for the first time in four weeks, even though the Omicron variant interrupted corporate operations, limiting job creation this month.
The Labour Department reported on Thursday a substantial drop of 30,000 from the previous week's revised level. The previous week's level was revised up by 4,000 from 286,000 to 290,000.
Read more: Federal Reserve hints at raising interest rates in March
However, economists polled by Bloomberg expected the claims to fall to 265,000.
Applications fell after a recent rise in response to an increase in Covid-19 cases across the country. Claims have generally decreased in the last year as businesses have struggled to maintain and attract personnel in the face of chronic labor shortages, Bloomberg stated.
Read more: IMF cuts 2022 global growth forecast as slowdowns in US, China to affect economies worldwide
The 4-week moving average was 247,000, an increase of 15,000 from the previous week's revised average. The previous week's average was revised up by 1,000 from 231,000 to 232,000.
The advance seasonally adjusted insured unemployment rate was 1.2 percent for the week ending January 15, unchanged from the previous week's unrevised rate.
Read more: IMF chief says Fed’s interest rate hikes could affect weaker economies
Job Creation
U.S. employment rose at a steady rate in December amid worker shortages and is expected to remain moderate as Covid-19 infections rise exponentially.
Read more: JPMorgan CEO sees 2022 could have best economic growth in decades, with more than four rate hikes
Nonfarm payrolls increased by 199,000 jobs last month, the Labor Department said. November’s data was also revised to 249,000 jobs instead of 210,000, as earlier reported while the unemployment rate fell to 3.9% from 4.2%.
Picture Credits: FT