(Bloomberg). – Applications for U.S. State Unemployment Insurance rose unexpectedly for the second consecutive week. It was the highest since February, which suggests that Covid-19 case surges could lead to dismissals.

The Labor Department reported Thursday that initial unemployment claims reached 200,000 in the week to Jan. 8, an increase of 23,000 over the previous period. A Bloomberg survey of economists found that the median estimate called for 200,000 applicants.

In the week ending Jan. 1, continuing claims for state benefits fell to a low of -.

According to the latest surge of coronavirus infection, businesses could be laying people off as a result. This is why there has been an increase in unemployment claims. The increase in unemployment claims could be temporary as the Covid-19 virus wave recedes and employers push for staff retention amid a labor shortage.

This may be due to difficulties in adjusting for seasonal effects during holidays. Claims figures have been difficult to interpret recently.

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