U.S. weekly jobless claims increase moderately
The number of people employed in the United States fell in January instead of the expected growth, labor data institute ADP said on Wednesday.
The number of Americans filing new claims for unemployment benefits rose last week and could increase further in the coming weeks amid disruptions from soaring COVID-19 infections.
Initial claims for state unemployment benefits increased 7,000 to a seasonally adjusted 207,000 for the week ended Jan. 1, the Labor Department said on Thursday. Claims dropped to 200,000 in the prior week.
Economists polled by Reuters had forecast 197,000 applications for the latest week. Applications typically increase during the holiday season, but an acute shortage of workers has disrupted that seasonal pattern, resulting in lower seasonally adjusted claims numbers in recent weeks. There were 10.6 million job openings at the end of November.
“Some businesses temporarily close around the holiday season, causing an increase in filings for unemployment benefits,” Veronica Clark, an economist at Citigroup in New York. “As worker shortages have been a persistent issue and employment levels are already lower than desired, this effect has been much less during the recent holiday season.”
Stripping out the weekly volatility, the labor market is tightening, with claims having declined from a record high of 6.149 million in early April 2020.
Minutes of the Federal Reserve’s Dec. 14-15 policy meeting published on Wednesday showed Fed officials viewed the labor market as “very tight.” The U.S. central bank might need to raise interest rates sooner than expected and begin reducing its overall asset holdings to tame high inflation, according to the minutes.
But with the United States reporting nearly 1 million new coronavirus infections on Monday, the highest daily tally of any country in the world, a temporary rise in claims is likely.
Related news
KSH: industrial production fell by 8.2 percent in June
In June 2024, the volume of industrial production was 8.2…
Read more >In the second quarter, GDP grew by 0.3 percent in the euro area and in the EU on a quarterly basis
In the second quarter of this year, with a seasonal…
Read more >Inflation slowed in the United States in July
In July, inflation and core inflation in the United States…
Read more >Related news
A new office responsible for food safety and retail trade can be established under the leadership of Márton Nagy
A new top organization called the National Trade Office could…
Read more >K&H: Almost two-thirds of businesses are planning development
The majority of domestic micro, small and medium-sized enterprises, 61…
Read more >KSH: industrial production fell by 8.2 percent in June
In June 2024, the volume of industrial production was 8.2…
Read more >