Applications for the US state unemployment fell for the third consecutive week as Covid-19 cases continued to fall, solidifying the labor market’s strength after an Omicron variant spike.
- Initial unemployment claims fell by 16,000 to 223,000 in the week ended February 5.
- Continuing claims for benefits remained unchanged at 1.62 million in the week ended January 29.
- Claims have been dropping for the last few weeks as the labor market rebounds from the spread of the Omicron variant, which led to an increase in unemployment applications over the New Year.
- Claims are dropping towards pre-pandemic levels as companies struggle to maintain and attract talent amid ongoing labor shortages, keeping layoffs at a record-low level.
- On an adjusted basis, initial claims dropped to 228,909 the previous week.
Kentucky, Tennessee, and Illinois were the states that posted the biggest declines in unadjusted claims. Michigan led other states with the largest increase in claims.
DXY up +0.41%, EUR USD down -0.34%
Source: US Department of Labor
