Omicron wave lifts U.S. weekly jobless claims

The number of Americans filing new claims for unemployment benefits increased to an eight-week high in the first week of January amid raging COVID-19 infections, but remained at a level consistent with a rapidly tightening labor market.

The weekly jobless claims report from the Labor Department on Thursday also offered more evidence that the jobs market was at or near maximum employment. State unemployment benefit rolls at the start of the year were the smallest since 1973. There are signs the worst of high inflation is likely over, with producer prices posting their smallest gain in 13 months in December.

Initial claims for state unemployment benefits increased 23,000 to a seasonally adjusted 230,000 for the week ended Jan. 8, the highest reading since mid-November. Economists polled by Reuters had forecast 200,000 applications for the latest week.