US weekly jobless claims rise marginally amid low layoffs

The weekly count of Americans seeking new unemployment benefits saw a slight uptick last week, hovering at 199,000, according to the Labour Department's latest report. This figure marked a 1,000-person increase from the previous period, as economists predicted 200,000 claims. For the fifth consecutive week, claims remained below the 200,000 threshold, signaling a "low-hire, low-fire" labor market, according to economic experts.

The Federal Reserve's Beige Book report highlighted that labor market conditions were "little changed" between late August and early October, with a generally adequate labor supply to meet demand. However, the report also noted persistent shortages for specialized, technical, and skilled trade workers in five districts. Additionally, some firms have opted to reduce staffing levels, either through attrition, delayed hiring, or anticipated less job creation due to increased productivity driven by AI investments.

The labor market remains anchored by low layoffs, with employers hesitant to expand their workforce amidst challenges such as tariffs and rising prices resulting from the US-Israeli conflict with Iran. The government reported a notable surge in consumer inflation in September, while the number of individuals receiving unemployment benefits after the initial week of aid decreased by 4,000 to 1.710 million during the week ending October 3.

However, the continuing claims, which do not include recent college graduates and others ineligible due to limited work history, remained low at 1.710 million. The median duration of unemployment stood at 11.5 weeks in September, nearing a 4-1/2-year peak. The overall unemployment rate remained steady at 4.2 percent for the month.