Jobless Claims Jump to 286,000, Highest Level since October

Jobless claims took an unexpected turn higher last week in a potential sign that the wintertime omicron surge was hitting the employment picture.

Initial filings for the week ended Jan. 15 totaled 286,000, well above the Dow Jones estimate of 225,000 and a substantial gain from the previous week’s 231,000.

The total was the highest since the week of Oct. 16, 2021 and marks a reversal after claims just a few weeks ago had hit their lowest level in more than 50 years.

Continuing claims, which run a week behind the headline data, also shot up, rising 84,000 to 1.64 million. One bright spot in the data showed that the four-week moving average for continuing claims, which irons out weekly volatility, declined by 55,250 to 1.664 million, the lowest since the week ended April 27, 2019.

Total recipients of all unemployment compensation programs rose by 180,114 to 2.13 million, according to data through Jan. 1.