The Great Resignation shows no signs of slowing down as the US Department of Labour reported 248,000 initial jobless claims, a jump of 23,000 from the previous week’s level.
In addition, the previous week’s level was adjusted upward by 2,000 from 223,00 to 2225,000.
The numbers provide mixed news for President Joe Biden. The Bureau of Labour Statistics reported that the US economy added 467,000 jobs in January, a sign that the economy is recovering from the Covid-19 pandemic and a surge of the Omicron variant during November and December.
Increased jobless claims amid a growing economy means that workers typically feel comfortable enough leaving a job that doesn’t pay enough or isn’t satisfactory. Similarly, seasonally adjusted initial claims are far below what they were in February 2021, when they were above 800,000 and now, a sign more people are coming back to work.
At the same time, the Biden administration is working to tackle surging inflation, which has largely eclipsed wage growth for workers.
Massive government spending and the vaccine rollout jumpstarted the economy as employers added a record 6.4 million jobs last year. The US economy expanded 5.7 per cent in 2021, growing last year at the fastest annual pace since a 7.2 per cent surge in 1984, also coming after a recession. An overheated US economy has spawned inflation not seen in four decades, leading the Federal Reserve to ease its monetary support for the economy. The Fed has signaled that it would begin a series of interest-rate hikes in March, reversing pandemic-era policies that have fueled hiring and growth, but also stubborn inflation.
Increased prices at the gas pump and grocery store have added to Mr Biden’s political headaches, as the American public has felt squeezed even as the overall economy shows signs of strength.
The Associated Press contributed to this article.
