WASHINGTON (AP) — U.S. applications for unemployment benefits inched up last week as layoffs remain historically low and most American workers enjoy job security.
Initial jobless claims for the week ending October 10 ticked up by 1,000 to 199,000 from the week before, the Labor Department said Thursday. The four-week average of claims, which smooths out week-to-week volatility, rose by 250 to 198,500.
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Claims for jobless benefits are a proxy for layoffs, and economists watch them closely because they can provide signs of where the job market is headed. So far this year, claims have remained at a historically low level below 220,000.
The weekly report continues to suggest that most companies are confident enough in the economy and their sales to hold onto their workers. At the same time, hiring has been sluggish, resulting in a “low-hire, low-fire” job market. Last month, the unemployment rate ticked up to a still-low 4.2%.
Earlier this month the government said that businesses and other employers added just 29,000 jobs in September, down from 133,000 in August and below what economists had forecast.
Yet with population growth slowing and immigration into the United States dropping, the economy doesn’t need to generate as many jobs every month to keep the unemployment rate low.
Despite a broadly healthy labor market, there are concerns that higher borrowing costs and persistent inflation caused by rising energy prices could cause businesses to slash jobs to reduce costs.
Earlier this week, the grocery store chain Kroger said it would lay off about 3,000 corporate employees over the next three years. Rival chain Albertson’s, which has already reduced its headcount, said more job cuts were coming.
The total number of Americans filing for unemployment benefits for the previous week ending October 3 fell by 4,000 to 1.71 million, also a historically healthy figure.
