WASHINGTON (MarketWatch)—The number of people who applied for unemployment benefits last week climbed 13,000 to 260,000 to match a six-week high, though the pace of layoffs in the U.S. remains exceedingly low.
Economists polled by MarketWatch had forecast claims to total a seasonally adjusted 248,000 in the week stretching from Oct. 9 to Oct. 15.
The biggest increases in claims happened in California, Pennsylvania, Texas and New York, states unaffected by a major hurricane earlier in the month.
Two weeks ago new claims fell to 246,000, marking the lowest level in 43 years. Initial claims have been below the key 300,000 threshold for 85 straight weeks, a feat that last occurred in 1970.
The less volatile four-week average of initial claims, seen as a more accurate measure of labor-market trends, rose slightly to 251,750, the Labor Department said Thursday.
The U.S. has added millions of jobs in the past six years, cutting the official unemployment rate in half to 5%. One of the biggest complaints of companies these days is that they cannot find enough skilled workers to fill open positions. As a result, firms are loath to cut staff since there is no guarantee they’ll find suitable replacements.
Continuing jobless claims increased by 7,000 to 2.06 million in the week ended Oct. 8 but clung near a 16-year low, the government said. These claims, reported with a one-week delay, reflect people already receiving unemployment checks.