Applications for U.S. unemployment benefits rose slightly in late October, but the level of jobless claims continued to point to an improving labor market in which companies are holding onto the workers they already have while slowly beefing up their staffs. Initial jobless claims climbed by 3,000 to 287,000 in the week ended Oct. 25, the Labor Department said Thursday. Economists surveyed by MarketWatch had expected claims to fall to a seasonally adjusted 281,000. Claims have been under the key 300,000 benchmark for seven straight weeks for the first time since the recession ended. The average of new claims over the past month, meanwhile, dipped by 250 to 281,000. The four-week average reduces seasonal volatility in the weekly report and is seen as a more accurate barometer of labor-market trends. Also, Labor said continuing claims increased by 29,000 to a seasonally adjusted 2.38 million in the week ended Oct. 18. Continuing claims reflect the number of people already receiving benefits. The number of initial claims from two weeks ago was revised up by 1,000 to 284,000.
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