In the USA, where Covid-19 cases increased rapidly, an unexpected increase was recorded in the number of applicants for unemployment benefits in the first week of January. However, it was observed that the applications increased in line with the rapidly shrinking labor market conditions.
According to data released by the US Department of Labor on Thursday, the number of applications for unemployment benefits in the week ending January 8 increased by 23,000 to 230,000 when seasonal adjustments were made. Economists participating in the Reuters news agency’s survey estimated that this number would be around 200,000.
The fact that the number of applications for unemployment benefits remained below the pre-pandemic level indicates that the labor market conditions have strengthened. At the beginning of April 2020, this number broke a record with 6 million 149 thousand per week.
Unemployment benefits applications remain low despite the rapid increase in cases of Corona infection due to the Omicron variant. Employers in the USA, which has a staff deficit of 10 million 600 thousand at the end of November, are trying to keep their employees out of their hands.
The US government announced last Friday that the unemployment rate fell to 3.9 percent in December, the lowest level in the last 22 months. This statement was considered as an indication that the job market was at or close to maximum employment.
According to the Beige Book, published eight times a year by the US Federal Reserve (FED), which is a summary of the current economic conditions, employers in the USA offer part-time employment opportunities to “attract more employees to their workplaces and retain their existing employees”. they are making some changes in the conditions and qualifications they are looking for. The contraction in the job market and rising inflation are leading economists to expect that the Fed will raise interest rates in March. Consumer prices in the US increased by 7 percent year-on-year in December, the highest increase since June 1982.