WASHINGTON– In the United States, applications for unemployment benefits rose slightly last week as layoffs remain historically low and most American workers enjoy job security.
Initial jobless claims for the week ending Oct. 10 increased by 1,000 to 199,000 from the previous week, the Labor Department said Thursday. The four-week average of claims, which smooths out week-to-week volatility, increased by 250 to 198,500.
Jobless claims are a proxy for layoffs, and economists watch them closely because they can provide insight into where the labor market is headed. So far this year, claims have remained at an all-time low, below 220,000.
The weekly report continues to suggest that most companies have enough confidence in the economy and their sales to retain employees. At the same time, hiring has been slow, resulting in a “low-hire, low-firing” labor market. Last month, the unemployment rate increased to a still-low 4.2%.
Earlier this month, the government said businesses and other employers added just 29,000 jobs in September, down from 133,000 in August and below economists’ forecasts.
Yet with population growth slowing and immigration declining in the United States, the economy does not need to generate as many jobs each month to keep the unemployment rate low.
Despite an overall healthy labor market, some worry that rising borrowing costs and persistent inflation caused by rising energy prices could prompt companies to cut jobs to cut costs.
Earlier this week, grocery chain Kroger announced it would lay off about 3,000 employees over the next three years. Rival chain Albertson’s, which has already cut its workforce, said more job cuts are coming.
The total number of Americans filing for unemployment benefits for the previous week ending Oct. 3 decreased by 4,000 to 1.71 million, also a historically healthy figure.
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