(Bloomberg) Applications for US state unemployment benefits dropped last week, signaling still-solid labor demand despite the recent surge of COVID-19 infections.
Initial unemployment claims amounted to 198,000 in the week ended December 25, a decrease of 8,000 from the prior week’s revised level. The economists had anticipated 206,000 applications.
Continuing claims for state benefits dropped to 1.72 million in the week ended December 18, the lowest since March of last year.
Labor shortages across the economy have made businesses unwilling to reduce staffing as they struggle to meet the rising demand for goods and services.
Claims figures have been rough in recent weeks, signaling challenges related to adjusting for seasonal effects over the holiday eve. Initial weekly applications are largely in line with pre-pandemic levels.
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