(Reuters] – Last week’s decline in Americans filing claims for unemployment benefits was due to the increase of coronavirus cases in the United States.

From a revised 206,000 one week prior, initial claims for state unemployment benefits fell to 198,000 in the week ending Dec. 25, from an adjusted seasonally adjusted 206,000 the previous week. In the early part of this month, claims fell to levels last seen in 1969.

Reuters polled economists to forecast that 208,000 applicants would apply for jobs in the upcoming week. The number of claims has fallen from 6.149million in April 2020, a record.

Sometimes applications rise in the winter months. However, an acute shortage has caused this seasonal pattern to be disrupted. In recent weeks, claims have been adjusted for season. The unemployment rate is at its lowest level in 21 months, 4.2%, even after removing weekly volatility.

End of October saw record numbers (11.0 million) job opportunities. As companies compete for workers, higher wages are helping to support consumer spending.

Consumer spending rose at 2.3% annually in the third quarter. The economy saw an increase of 2.3% over the year. For the fourth quarter, growth projections range from 7.2% to 8.3%. A Reuters poll of economists found that the economic outlook for 2021 is 5.6%. It would represent the fastest growth rate since 1984. The economy contracted by 3.4% in 2020.

Omicron’s fast spread is causing questions about the sustainability of this momentum. COVID-19 infected have risen to new records and are exceeding last winter’s soaring waves. The $1.75 trillion domestic investment program of the Biden Administration is also stalled in Congress.

Some economists are reducing their forecast for growth next year in light of these uncertainties.