U.S. initial jobless claims rise to 231,000, up 22,000 from prior week

Financial News (New York) – Reporter Lee Byung-chulNew applications for unemployment benefits in the United States rose much more than expected last week. However, many analysts say the overall labor market still appears stable once temporary factors such as heavy snowstorms are taken into account.
The U.S. Department of Labor reported on the 5th (local time) that initial claims for state unemployment benefits totaled a seasonally adjusted 231,000 for the week ending January 31. That was an increase of 22,000 from the previous week.
The jump may have been influenced by the heavy snow and bitter cold that hit large parts of the United States at the end of January. Some workers may have temporarily lost their jobs or been unable to work because of the severe weather, according to analysts.
Another view is that the increase reflects the unwinding of the typical volatility seen in early-year statistics. Even after allowing for such distortions, most assessments are that the labor market remains in what economists call a "low hire, low fire" phase, marked by subdued hiring but also relatively few layoffs.
Meanwhile, the number of people continuing to receive unemployment benefits after an initial claim—a proxy for overall employment—came to a seasonally adjusted 1,844,000 in the week ending January 24, up 25,000 from the previous week.



pride@fnnews.com Lee Byung-chul Reporter