WASHINGTON: The number of Americans filing new claims for unemployment benefits increased marginally last week amid low layoffs that are keeping the labor market stable.
Initial claims for state unemployment benefits rose 1,000 to a seasonally adjusted 199,000 for the week ended October 10, the Labor Department said on Thursday. Economists polled by Reuters had forecast 200,000 claims for the latest week.
It was the fifth straight week that claims remained below the 200,000 level, consistent with what economists said was a "low-hire, low-fire" labor market.
The Federal Reserve's Beige Book report on Wednesday described labor market conditions as "little changed" between late August and early October, with labor supply "generally adequate to meet demand."
But it also noted persistent shortages "for specialized, technical and skilled trade workers," adding five districts reported that "some firms had either reduced staffing levels, through attrition, delayed hiring, or anticipated less job creation after increasing productivity by investing in AI."
The labor market is being anchored by low layoffs, with the hiring side sluggish as employers deal with what economists call headwinds from tariffs and rising prices from the US-Israeli war with Iran. The government on Wednesday reported a surge in consumer inflation in September.
The claims report showed the number of people receiving unemployment benefits after an initial week of aid, a proxy for hiring, fell 4,000 to a seasonally adjusted 1.710 million during the week ended October 3.
The so-called continuing claims, however, do not include recent college graduates and others who are ineligible for benefits because of a short or no work history.
Some long-term unemployed people may have exhausted their eligibility, which is limited to 26 weeks in most states, keeping continuing claims at low levels. The median duration of unemployment was 11.5 weeks in September, near a 4-1/2-year high. The unemployment rate was at 4.2% last month. - Reuters
