Weekly US jobless claims rise for the first time in a month

Author: Matt Ott / AP
Published:
FILE – Marriott human resources recruiter Mariela Cuevas, left, talks to Lisbet Oliveros, during a job fair at Hard Rock Stadium, Friday, Sept. 3, 2021, in Miami Gardens, Fla. Last month, U.S. employers might have shed jobs for the first time in about a year, potentially raising alarms about the economy’s trajectory. Yet even if the January employment report coming Friday, Feb. 3, 2022, were to show a deep loss of jobs, there would be little mystery about the likely culprit: A wave of omicron wave of infections that led millions of workers to stay home sick, discouraged consumers from venturing out to spend and likely froze hiring at many companies — even those that want to fill jobs. (AP Photo/Marta Lavandier, File)

More Americans applied for unemployment benefits last week following three straight weeks of declines.

Jobless claims rose by 23,000 to 248,000 for the week ending Feb. 12, the Labor Department reported Thursday. Claims were revised up to 225,000 the previous week.

The four-week average for claims, which compensates for weekly volatility, fell by 10,500 to 243,250. It was the second straight week of declines after rising for five straight weeks as the omicron variant of the coronavirus spread, disrupting business in many parts of the U.S.

In total, fewer than 1.6 million Americans were collecting jobless aid the week that ended Feb. 5, a decrease of about 26,000 from the previous week.

Earlier this month, the Labor Department reported a surprising burst of hiring in January, with employers adding 467,000 jobs. It also revised upward its estimate for job gains in November and December by a combined 709,000. The unemployment rate edged up to a still-low 4% from 3.9%, as more people began looking for work, but not all of them securing jobs right away.

Even as omicron variant spread quickly earlier this winter, employers have been eager to hire. That winter spike in infections briefly tripped up the country’s strong recovery from 2020′s virus-caused recession, but employers appear confident in long-term growth.

Massive government spending and the vaccine rollout jumpstarted the economy as employers added a record 6.4 million jobs last year. The U.S. economy expanded 5.7% in 2021, growing last year at the fastest annual pace since a 7.2% surge in 1984, also coming after a recession.

An overheated U.S. economy has spawned inflation not seen in four decades, leading the Federal Reserve to ease its support for the economy. The Fed has signaled that it would begin a series of interest-rate hikes in March, reversing pandemic-era policies that have fueled hiring and growth but also stubborn inflation.

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