WASHINGTON (AP) — More Americans sought unemployment benefits last week, snapping a three-week streak of declines.
Initial claims rose by 23,000, to 248,000, for the week ending February 12, the Labor Department said on Thursday. The prior week’s figure was revised to 225,000.
The four-week moving average, which smooths out weekly volatility, fell by 10,500, to 243,250. It marked the second straight week of declines after rising for five weeks as the Omicron coronavirus variant spread, disrupting business activity in many parts of the country.
In total, fewer than 1.6 million people were receiving unemployment benefits in the week ending February 5, down about 26,000 from the previous week.
This month, the Labor Department reported a surprising uptick in hiring in January, with employers adding 467,000 jobs. It also revised upward its estimates of job gains for November and December by a combined total of 709,000. The unemployment rate ticked up slightly, from 3.9% to 4.0%, as more people entered the labor market, though not everyone found work immediately.
Even as Omicron spread rapidly through the winter, employers have continued hiring. The surge in infections briefly tempered the economy’s robust rebound from the 2020 pandemic recession, but businesses appear confident about long-term growth.
Heavy government spending and the rollout of vaccines helped power the economy, with businesses adding a record 6.4 million jobs last year.
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