The number of Americans receiving unemployment benefits jumped above 1.6 million.
The number of new unemployment claims unexpectedly jumped for the third week in a row this month, adding to evidence suggesting the record wave of coronavirus cases this month—spurred by the rapidly spreading omicron variant—has stunted the economic recovery. ...
The new report also showed the number of Americans receiving unemployment benefits jumped above 1.6 million in the week ending January 8 after a marked decline in the previous week—before the omicron variant of the coronavirus fueled a record spike in Covid-19 cases. The concerning data comes after an unexpected spike last week that Bankrate senior economic analyst Mark Hamrick says “may well have been the first report suggesting omicron is leading to new job loss.”
In a morning email, Hamrick said the pop in new claims—the highest level since October—suggests the omicron variant has"tainted recent economic activity" and added that the the job market recovery has been further stifled by supply chain disruptions and high inflation.“The future path of the pandemic remains highly uncertain, but the underlying job market narrative overall continues be one of scarcity of available applicants and workers,” Hamrick said last week.
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