US jobless claims fall after labor market recovers from Omicron turmoil

• The 4-week moving average edges up to 253,250

• The advance seasonally adjusted insured unemployment rate is 1.2 %

The number of new unemployment benefit claims filed in the United States fell for the third week in a row to 223,000, indicating a tight job market after the Omicron variant interrupted corporate operations. 

The Labour Department reported on Thursday a substantial drop of 16,000 from the previous week's revised level. The previous week's level was revised up by 1,000 from 238,000 to 239,000. 

However, economists polled by Bloomberg expected the claims to fall to 230,000. 

Read more: U.S. labor costs rise highest in two decades amid accelerating inflation

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. 

The 4-week moving average was 253,250, a decrease of 2,000 from the previous week's revised average. The previous week's average was revised up by 250 from 255,000 to 255,250. 

Read more: US Treasury yields bounce ahead of inflation report

The advance seasonally adjusted insured unemployment rate was 1.2 % for the week ending January 29, unchanged from the previous week's unrevised rate 

Job Creation 

According to the Labor Department, the US economy created 467,000 jobs in January. 

In January, the unemployment rate increased from 3.9 % to 4 %. As a result, earnings increased 5.7 % year on year in January, nearly double the pre-pandemic norm of approximately 3 %.

Read more: US consumer debt totals $15.6 trillion in 2021, record increase in 18 years

The increase in instances related to the Omicron variation exacerbated the labor crisis by causing workers to call in sick. In January, around 3.6 million Americans were employed but away from work owing to sickness. 

Picture Credits: CNBC