US Jobless Claims Rise to 286,000, Highest Since October

January 20, 2022by Paul Wiseman, Associated Press
US Jobless Claims Rise to 286,000, Highest Since October
A hiring sign is placed at a booth for prospective employers during a job fair Wednesday, Sept. 22, 2021, in the West Hollywood section of Los Angeles. (AP Photo/Marcio Jose Sanchez)

WASHINGTON (AP) — The number of Americans applying for unemployment benefits rose to the highest level in three months as the fast-spreading omicron variant continued to disrupt the job market.

Jobless claims rose for the third straight week — by 55,000 to 286,000, highest since mid-October, the Labor Department reported Thursday. The jump in claims marked the biggest one-week increase since mid-July.

The four-week average of claims, which smooths out weekly volatility, rose by 20,000 to 231,000, highest since late November. Economists said that last week’s claims may have been inflated by the Labor Department’s attempts to tweak the numbers to account for seasonal variations; unadjusted, applications fell last week by more than 83,000.

“We could see one more week of notably higher claims before they should top out,” analysts with Contingent Macro Advisors predicted. “This bears close watching going forward.”

The Federal Reserve might reconsider plans to ease its massive support for the economy if claims stay above 250,000 as the Fed’s March policy meeting approaches, Contingent said.

A surge in COVID-19 cases has set back what had been a strong comeback from last year’s short but devastating coronavirus recession. Jobless claims, a proxy for layoffs, had fallen mostly steadily for about a year and late last year dipped below the pre-pandemic average of around 220,000 a week.

Altogether, 1.6 million people were collecting jobless aid the week that ended Jan. 8.

Companies are hanging on to workers they have at a time when it’s difficult to find replacements. Employers posted 10.6 million job openings in November, the fifth-highest monthly total in records going back to 2000. A record 4.5 million workers quit their jobs in November — a sign that they are confident enough to look something better.

The job market has bounced back from last year’s brief but intense coronavirus recession. When COVID-19 hit, governments ordered lockdowns, consumers stayed at home and many businesses closed or cut back hours. Employers slashed millions of jobs in March and April 2020, and the unemployment rate rocketed to 14.7%.

But massive government spending — and eventually the rollout of vaccines — brought the economy back. Last year, employers added a record 6.4 million jobs — but that still was not enough to make up for the unprecedented 9.4 million jobs lost in 2020. And hiring slowed in November and December last year as employers struggled to fill job openings.

Still, the unemployment rate fell last month to a pandemic low 3.9%.

A+
a-
  • COVID-19
  • jobs
  • Unemployment
  • In The News

    Health

    Voting

    Employment

    Trump Wants to Fire Thousands of Government Workers. Liberals Are Preparing to Fight Back if He Wins

    WASHINGTON (AP) — Former President Donald Trump has plans to radically reshape the federal government if he returns to the White House, from promising... Read More

    WASHINGTON (AP) — Former President Donald Trump has plans to radically reshape the federal government if he returns to the White House, from promising to deport millions of immigrants in the U.S. illegally to abolishing government agencies and firing tens of thousands of workers and replacing them with loyalists. Liberal organizations in... Read More

    Inflation Slowed Further in December as Economic 'Soft Landing' Moves Into Sharper Focus

    WASHINGTON (AP) — The Federal Reserve’s preferred inflation gauge cooled further last month even as the economy kept growing briskly, a... Read More

    WASHINGTON (AP) — The Federal Reserve’s preferred inflation gauge cooled further last month even as the economy kept growing briskly, a trend sure to be welcomed at the White House as President Joe Biden seeks re-election in a race that could pivot on his economic stewardship. Friday’s... Read More

    December 22, 2023
    by Dan McCue
    President Signs Order Giving Civilian Fed Workers 5.2% Raise

    WASHINGTON — President Joe Biden on Thursday signed an executive order fulfilling his promise to provide civilian federal workers with... Read More

    WASHINGTON — President Joe Biden on Thursday signed an executive order fulfilling his promise to provide civilian federal workers with an average 5.2% pay raise starting in mid-January. Biden had proposed the bump in salaries in the 2024 budget proposal he released last March. According to... Read More

    In Milwaukee, Biden Looks to Highlight Progress for Black-Owned Small Businesses

    WASHINGTON (AP) — President Joe Biden is aiming to use a visit to the battleground state of Wisconsin on Wednesday... Read More

    WASHINGTON (AP) — President Joe Biden is aiming to use a visit to the battleground state of Wisconsin on Wednesday to spotlight a surge in federal government support for Black-owned small businesses during his White House tenure and to highlight his administration's efforts to ramp up... Read More

    December 6, 2023
    by Dan McCue
    Greene Seeks to Reinstate Pilots Fired Due to COVID-19 Vaccine Mandates

    WASHINGTON — Rep. Marjorie Taylor Greene, R-Ga., has introduced legislation in the House aimed at reinstating pilots who were fired... Read More

    WASHINGTON — Rep. Marjorie Taylor Greene, R-Ga., has introduced legislation in the House aimed at reinstating pilots who were fired or forced to resign due to COVID-19 vaccination mandates. A companion bill is being sponsored in the Senate by Sen. Roger Marshall, R-Kan. While there is... Read More

    UAW Strikes at General Motors SUV Plant in Texas

    DETROIT (AP) — The United Auto Workers union turned up the heat on General Motors as 5,000 workers walked off... Read More

    DETROIT (AP) — The United Auto Workers union turned up the heat on General Motors as 5,000 workers walked off their jobs Tuesday at a highly profitable SUV factory in Arlington, Texas. The move comes just a day after the union went on strike at a Stellantis... Read More

    News From The Well
    scroll top