Jobless claims hit 3-month high of 265,000

Jobless claims hit 3-month high of 265,000

By Jeffry Bartash

Low level of layoffs shows labor market still improving

                                             Getty Images
Layoffs in the U.S. remain extremely low and job openings are near a record high.
The number of people who applied for unemployment benefits at the end of October rose by 7,000 to a three-month high of 265,000, but the rate of layoffs in the U.S. remains extremely low.

Economists polled by MarketWatch had forecast claims to total a seasonally adjusted 258,000 in the week stretching from Oct. 23 to Oct. 29. Read government report.

Initial jobless claims
New claims fell to a 43-year low of 246,000 in early October before heading higher. Still, initial claims have been below the key 300,000 threshold for 87 straight weeks, a steak last accomplished in 1970.

The low level of claims were expected by investors and Wall Street DJIA, -0.16%  showed little reaction.

On Friday, the government will issue the employment report for October that’s expected to show an increase of 185,000 new jobs. The jobless rate could also fall a tick to 4.9%, according to economists surveyed by MarketWatch.

Although the economy has slowed, consumers and businesses are still spending enough to induce companies to increase production of goods and services and add even more workers. The U.S. has added an average of 178,000 new jobs a month so far in 2016.

The less volatile four-week average of initial claims, seen as a more accurate measure of labor-market trends, rose by 4,750 to 257,750, the Labor Department said Thursday.

Continuing jobless claims fell by 14,000 to 2.03 million in the week ended Oct. 22. These claims, reported with a one-week delay, reflect the number of people already receiving unemployment checks.