The number of jobless claims in the United States jumped to 286,000 under the impact of the Omikron

According to data released by the US Department of Labor on Thursday (January 20), the number of initial jobless claims in the United States for the week until January 15 recorded 286,000, a new high since October last year, far exceeding market expectations of 225,000 and an increase of 56,000 from the previous value of 230,000.

The number of U.S. jobless claims rose to 1.635 million in the week ended January 8, the highest level since October 2021, at a forecast value of 1.563 million compared to 1.551 million in the previous month.

U.S. jobless claims rose unexpectedly for the third consecutive week to their highest level since mid-October, suggesting the Opicron outbreak could lead to layoffs. In addition, the Opichron infection wave has disrupted business activity, which could limit job growth this month.

The increase in initial petitions could mean that employers laid off workers during the recent surge in COVID-19 cases. Even so, with the current labor shortage in which companies are desperate to retain and attract talent, the impact of layoffs should be short-lived.

The data shows that the average of 732,245 cases of COVID-19 infection have been reported in the United States recently, however, there are signs that new cases have begun to decrease in some areas, including the hardest-hit area of New York.

Economists expect that as the number of infections declines, the number of people filing for unemployment benefits will begin to decline. The number of claimants has fallen sharply from a record high of 6.15 million in early April 2020, but labor market conditions are still tightening.

Employers desperately need employees, with 10.6 million job openings at the end of November last year. The U.S. unemployment rate is 3.9 percent, the lowest in 22 months, suggesting that the labor market is at or near full employment.

Reports of resignations and job vacancies lag by weeks, according to employment website Indeed, with evidence that the surge in COVID-19 cases has slowed the growth of employer hiring information.

David Kelly, chief global strategist at JPMorgan Chase& Co., said: "If Omilon is really the last wave of the pandemic and people's lives will return to normal by March, then there should be a strong rebound in economic activity in the second quarter. However, if covid-19 continues, spending on leisure and entertainment and labor supply throughout the year is likely to remain subdued. ”