US initial jobless claims unexpectedly increase

First-time claims for unemployment benefits came in at 207,000 in the week ended 1 January, according to the Labor Department, up from 200,000 in the previous week and above the 195,000 forecast by economists.

Continuing claims, which run a week behind the headline number, also increased, rising by 36,000 to 1.75m, while the four-week moving average, which accounts for weekly volatility in the numbers, grew to 204,500.

Despite the increase, the latest report showed that claims were still sitting at a level lower than before the Covid-19 pandemic, when claims averaged roughly 215,000.