New York's economy added 20,600 jobs in the private sector in January as the omicron variant of COVID-19 led to a sharp increase in cases and hospitalizations, the state Department of Labor on Thursday announced. 

The numbers released by labor officials show New York's unemployment rate decreased slightly from 5.4% to 5.3%. But it was not all good news. 

New York City's unemployment rate remains higher than the rest of state, and actually increased in January from 7.4% to 7.6%. Outside of the city, the jobless rate declined from 3.9% to 3.6%. 

The since-subsided surge in COVID-19 cases this winter did not appear to dent the return of private-sector employment in the state. Though a record number of cases were reported this winter, the omicron variant was considered less severe, especially for people who were fully vaccinated and boosted for the virus. 

Hospitalizations still increased in New York state, and some hospitals had to limit elective surgeries and procedures due to a staffed bed shortage. 

Still, New York's unemployment picture remains higher than prior to the start of the pandemic in February 2020, when it stood at 3.7%. And unemployment remains far higher in New York City. 

New York's private-sector job count grew by 0.3% in January, a similar rate on the national level. At the same time, private sector jobs in New York grew by 6.4% year over year, a faster clip than the rest of the country.