Jobless claims rise to 207,000 but hover near pandemic low

• Initial jobless claims increased to 207,00 last week

• The 4-week moving average edged down to 204,500

The number of people claiming unemployment benefits in the United States remained at five-decade lows last week as employers seek to retain staff amid rising Omicron variant cases. 

The Labour Department reported on Thursday 207,000, claims an increase of 7,000 from the previous week's revised level. The previous week's level was revised up by 2,000 from 198,000 to 200,000

Economists polled by The Wall Street Journal anticipate that first jobless claims remained stable at a seasonally adjusted 195,000 for the week that ended Jan. 1.

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The 4-week moving average was 204,500, an increase of 4,750 from the previous week's revised average. The previous week's average was revised up by 500 from 199,250 to 199,750. 

The advance seasonally adjusted insured unemployment rate was 1.3 percent for the week ending December 25, unchanged from the previous week's unrevised rate. 

The fall in the number of Americans claiming unemployment benefits dropped sharply, reflecting the impact of the end of several federal pandemic benefits programs by the states.

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Though the recently discovered Omicron version of Covid-19 is possessing a danger to the labor market and the entire economy.

Job Creation 

U.S private companies added employment at the fastest pace in December since May 2021, despite concerns over growing fear of Omicron covid variant.

According to the ADP National Employment Report released on Wednesday, private payrolls totaled 807,000 last month, well above the November gain of 505,000. The November total was revised from the previously stated 534,000. 

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The Large businesses with 500 or more employees added 389,000 during the month. Medium-sized businesses with 50 to 499 employees recruited 214,000 people, while businesses with less than 50 workers employed 204,000.

Picture Credits: Al Jazeera