US jobless claims decline for first time in 4 weeks

[WASHINGTON] Applications for US state unemployment insurance fell for the first time in 4 weeks, partially unwinding a recent spike in claims due to the Omicron variant.

Initial unemployment claims totaled 260,000 in the week ended Jan 22, down 30,000 from the prior period, Labor Department data showed on Thursday (Jan 27). The median estimate in a Bloomberg survey of economists called for 265,000 applications.

Applications declined after a surge in recent weeks amid an uptick in Covid-19 cases across the country. Claims have largely been falling in the past year as companies are desperate to retain and attract talent amid ongoing labour shortages. Continuing claims for state benefits advanced to 1.68 million in the week ended Jan 15.

On an unadjusted basis, claims retreated to 267,573 last week. All except two states registered declines in unadjusted claims, with Pennsylvania, New York, and New Jersey posting the biggest decreases. BLOOMBERG