US jobless claims slide to 232,000 amid strong labor market

• The 4-week moving average edges down to 236,250

• The advance seasonally adjusted insured unemployment rate is 1.1 %

The number of new unemployment benefit claims filed in the United States tumbled last week to 232,000 as the job market rebounds from the omicron variant.

The Labour Department reported on Thursday a substantial decrease of 17,000 from the previous week's revised level. The previous week's level was revised up by 1,000 from 248,000 to 249,000. 

However, economists polled by Bloomberg expected the claims to fall to 235,000. 

Read more: US added 467,000 jobs in January, unemployment rate grows to 4%

The drop in claims is consistent with a labor market that has returned to normal following the omicron-induced increase last month. Demand for labor continues to outweigh supply, and as Covid-19 instances decline and limitations relax, more Americans should be willing to return to work, Bloomberg stated. 

The increase in applications is most likely a one-time blip following three weeks of reductions as the job market rebounds from the omicron variation.

The 4-week moving average was 236,250, a decrease of 7,250 from the previous week's revised average. The previous week's average was revised up by 250 from 243,250 to 243,500.

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

The advance seasonally adjusted insured unemployment rate was 1.1 % for the week, unchanged from the previous week's revised rate.

In the week ending Feb. 12, continuing claims for state benefits decreased to 1.48 million.

According to a separate report from the Commerce Department, gross domestic product, which includes all goods and services produced in the United States, rose at a 7% annualized pace in the fourth quarter.

Picture Credits: Al Jazeera