US unemployment claims rise to 230,000

Date:

Submitting unemployed claims Rise to 230,000 seasonally adjusted Last week, the tight labor market in the United States maintained applications near pre-pandemic lows for the past two months, resulting in an increase of 23,000.

The January 8 week increase was caused by the employer’s response Workers called sick because of Omicron variants Of Covid-19. According to the Ministry of Labor, the four-week moving average rose to 210,750 last week.

An economist surveyed by The Wall Street Journal estimated that unemployed claims on behalf of layoffs would drop to just 200,000 in the week ending January 8.

The four-week moving average, which smoothes the volatility of initial billing and weekly numbers, has been around record lows for the past few weeks.

Continuing claims to provide an estimate of the number of people receiving benefits fell by almost 200,000 to 1.6 million in the week ending January 1.

Omicron variants pushed COVID-19 case When hospitalization Record highs in the U.S., economists predict waves are likely to cause Short-term slowdown in economic growth..

People who are absent from work for fear of getting sick or ill have disrupted air travel, entertainment and other economic sectors, and are temporarily shifting schools to distance learning.

“We’re talking about absenteeism to the point where some companies can’t run it. If you want to call absenteeism a new blockade,” said Rubela Farooqi, Chief Economist of US High Frequency Economics.

Absenteeism caused by Covid-19 (employees unexpectedly missed a job) is a particular challenge for small businesses who may not be able to afford the missed shift, Farooqi said. She added that it could also lead to the risk of layoffs at these small businesses.

“If you look at your corner pizzeria that already suffers from capacity constraints during Omicron, there is a risk,” Farooqi said.

She said the impact of a pandemic on the economy as a whole would evolve over time and be mitigated with each wave of events. This is because companies are striving to stay in business despite the ongoing challenges of the pandemic, Farooqi said.

Tracy Wallace, owner of the Peacock Wine Bar in Gilbert, Arizona, said it’s still unclear when the business will be busy since its reopening in September 2020. As much as possible.

“It gave me a lot of anxiety and I couldn’t plan anything, so I had to stop seeing and thinking about it.” Mrs. Wallace pandemic. Mentioned and said. “I had to keep moving forward, otherwise I would get stuck and I wouldn’t be able to move anywhere.”

Due to the tight labor market, businesses lack enough workers during times of high consumer demand. Workers continue to be on the sidelines of the labor market, Quit work at a record levelPressure employers to raise wages and strengthen benefits to attract workers.

The American workforce is changing rapidly. In August, 4.3 million workers quit their jobs. This is part of what many call “mass layoffs.” Let’s see where the workers go and why. Photo Illustration: Liz Ornitz / WSJ

Rising wages are a factor in rising inflation, and in 2021 Fastest annual pace since 1982..

“Price wage momentum has already begun. We need to raise wages, otherwise we will not be able to retain workers, and if we raise wages, we will sooner or later need to raise prices,” said Loyola Marymount University in Los Angeles. Sung Won-sung, a professor of financial economics at Los Angeles, said.

Write in Brian Mena bryan.mena@wsj.com

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US unemployment claims rise to 230,000

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