Jobless claims jump to highest level since early August

The numbers: The number of Americans who applied for unemployment benefits in late September rose to the highest level since early August.

Initial jobless claims, a rough substitute for layoffs, rose 12,000 to 214,000 in the seven days ended Sept. 22.

Economists polled by MarketWatch had forecast claims to climb to 216,000. The very low number of claims in the prior week may have been partly depressed by Hurricane Florence. Officials could not say for sure whether the rise in claims was caused by the massive storm.

The monthly average of new claims, meanwhile, rose 250 to 206,250, the government said Thursday.
The number of people already collecting unemployment benefits rose 16,000 to 1.66 million. These are known as “continuing” claims.

What happened: The number of layoffs in the U.S. have steadily drifted lower this year owing to strong economic growth and hiring, putting them at the lowest level in half a century.

Some economists even predict claims will soon drop below 200,000 for the first time since 1969.

Big picture: The number of layoffs in the U.S. have steadily drifted lower this year owing to strong economic growth and hiring. With unemployment at an 18-year low and likely to head even lower, most companies are reluctant to fire anyone lest than fail to find replacements.

Firms already have enough problems filling a record number of open jobs. Some are struggling to keep up with rising demand for their goods and services.