(Bloomberg – Applications for U.S. unemployment insurance rose to an all-time high of three months last week, suggesting that there is a greater impact from the omicron variation on the labor markets.

In the week that ended January 15, Labor Department data revealed Thursday that initial unemployment claims rose 55,000. This figure was higher than all the estimates made by economists in a Bloomberg poll. It reflects January’s reference week of employment data, due in the early part of next month.

The week ended January 8. saw an increase in claims for continued state benefits.

This may indicate that employers are reducing staff in response to recent Covid case surges. The fallout from the Covid surge should be temporary as many companies want to keep and attract talented workers in light of ongoing labor shortages.

The last week has seen a dip in claims figures, indicating difficulties with seasonal adjustments during holidays.

According to an unadjusted calculation, claims dropped from 337 417 to 83 418 last week. Unadjusted claims fell the most in Texas, Missouri, and New York. California had the highest increase in applications.

©2022 Bloomberg L.P.