Unemployment claims in the United States fell sharply last week

However, the latest figures came as storms disrupted operations in parts of the country and at least one state appeared to adjust for fraud filing attempts, factors that could have caused the totals to be lost.

Compensation claims fell dramatically in Ohio last week after a sharp increase earlier this month that state officials said was likely attempted fraud. And storms and freezing temperatures in Texas and elsewhere have caused power outages and widespread disruption.

Recent data is broadly consistent with a labor market that has remained near neutral this winter, while other readings of the economy have pointed to a recovery.

Unemployed job applications are being closely watched by policymakers and investors for the direction of the labor market and the economy in general, but the winter storms that have hit Texas and elsewhere could affect trends in employment. short-term layoffs. The storms could create temporary unemployment for some workers and make it difficult for people to file claims and for state governments to process them.

“With severe weather events, we typically see a short-term increase in layoffs that corrects itself within weeks,” said Dave Gilbertson, vice president of Ultimate Kronos Group, a workplace software company. “However, while the economy is already struggling to accelerate, these temporary layoffs can delay the recovery in devastating ways.”

UKG data showed that the number of shifts worked by employees across the United States fell last week, due to a 58.5% drop in Mississippi and almost 50% in Texas and Louisiana.

Employers added just 49,000 net jobs in January after cutting 227,000 jobs in December, the labor ministry said. These monthly readings marked a significant slowdown in hiring, compared to last summer, when part of the economy reopened with the easing of state restrictions. Until January, the economy had recovered just over half of all the jobs lost last spring.

There are signs this year that economic activity is set to pick up as Covid-19 cases drop, more people get vaccinated, government stimulus measures reach households and businesses and states lift restrictions.

The number of job postings at the end of January surpassed the levels of the previous year, according to the job search site Indeed.com. Thanks to a new wave of stimulus, retail spending accelerated in January. The Commerce Department is expected to release January household income and spending on Friday, which shows both increased during the month.

Economists are forecasting faster economic and job growth later this year, with people polled by the Wall Street Journal predicting employers will add 4.8 million jobs in 2021.

“We know that very rapid job growth will happen as soon as some of these industries – hospitality, entertainment and travel – can restart,” said Andy Challenger, senior vice president of the outplacement company Challenger, Gray & Christmas. “But for the moment, we are in the doldrums of this recovery.”

Winter weather conditions have likely caused temporary layoffs among construction companies and small businesses in recent weeks, Challenger said. Among the large entities his company tracks, announcements of job cuts are much lower than at the start of the pandemic, but they are increasingly widespread and include airlines, food manufacturers, government agencies. and media companies.

A recent extension of improved unemployment benefits and temporary easing of job search conditions could also skew recent data on claims.

Late last year, Congress and then-President Donald Trump approved a $ 300 increase in unemployment benefits on top of regular state benefits, which paid an average of 319.02 dollars a week last year, according to the Department of Labor. Earlier this year, President Biden separately released an executive decision clarifying that workers who turn down jobs for security reasons, including possible exposure to Covid-19, can still qualify for unemployment insurance .

The combination of larger payments and more lenient application of job search requirements could encourage more workers to apply for benefits, in some cases instead of looking for work.

In addition to regular state benefits, the Department of Labor reports the number of people enrolled in two special pandemic programs: one for self-employed and on-demand workers, and one for those who have exhausted other forms of benefits. The total number of pending applications filed for these two programs was nearly 12 million at the end of January. That’s more than double the estimated number of current benefit recipients under regular state programs, which cover most working Americans.

Margaret Grosso, 75, has been out of work for over a year and receives extended unemployment benefits. She is looking for receptionist and clerical jobs, especially at hospitals near her home in northern New Jersey. She said she had received two doses of the Covid-19 vaccine and was eager to return to work to supplement her social security benefits.

“I do interviews – and I’m grateful I even got it – but they keep telling me I’m overqualified,” she said. Ms. Grosso has worked as an office administrator, account manager and previously as a model in the fashion industry. “I feel like it’s a question of age – it’s just very difficult and daunting.”

—Sarah Chaney Cambon contributed to this article.

Write to Eric Morath at [email protected]