The number of Americans filing applications for unemployment benefits rose marginally last week, suggesting the labor market continues to tighten despite slowing hiring and economic growth.

Initial claims for state unemployment benefits increased 4,000 to a seasonally adjusted 214,000 for the week ended Oct. 12, the Labor Department said on Thursday. Data for the prior week was unrevised.

Economists polled by Reuters had forecast claims rising to 215,000 in the latest week. The Labor Department said claims for Maryland, New York, Virginia, and Puerto Rico were estimated last week because of Monday's Columbus Day holiday.

The four-week moving average of initial claims, considered a better measure of labor market trends as it irons out week-to-week volatility, rose 1,000 to 214,750 last week.

Employers are hanging on to their workers as the pool of qualified workers continues to shrink. Despite the low layoffs, the labor market is losing momentum also as demand for labor cools, especially in manufacturing, in line with slowing economic growth.

The Federal Reserve said in its Beige Book report on Wednesday that labor market tightness was widely cited as a factor restraining hiring. The U.S. central bank also noted that "a number of districts reported that manufacturers reduced their headcounts because orders were soft."