1 hour ago
New US jobless claims fell to 197,000 last week, the lowest since mid-July. The figures suggest layoffs remain limited even as hiring continues at a slower pace.
Stock photo used for illustration
Washington,Oct 1, 2026 18:44 IST
The number of Americans filing new claims for unemployment benefits fell last week to its lowest level since mid-July, pointing to a US labour market where layoffs remain limited and most workers continue to enjoy job security.
Data released by the Labour Department on Thursday showed initial jobless claims slipped to 197,000 from a revised 198,000 in the previous week. The four-week average, which smooths weekly fluctuations, fell by 2,500 to 200,000.
Claims for jobless benefits are seen as a measure of layoffs and are closely tracked by economists as an indicator of where the jobs market may be headed. This year, claims have mostly remained below 220,000, which is historically low.
The US jobs market has stayed firm despite higher energy prices that have put pressure on businesses and consumers since fighting with Iran began on February 28.
Layoffs have remained low, with businesses still wary of cutting staff after the labour shortages that followed the end of pandemic lockdowns. Hiring is continuing, though at a more modest pace than in recent years.
So far this year, employers, including companies, government agencies and non-profits, have added an average of 80,000 jobs a month. That includes a stronger-than-expected 162,000 jobs added in August. This marks an improvement from 2025, when monthly job growth averaged 9,700 as high interest rates and President Donald Trump's unpredictable trade policies weighed on hiring.
The Labour Department is due to release its September jobs report next week. According to a survey of forecasters by data firm FactSet, employers are expected to have added 90,000 jobs, while the unemployment rate is projected to have stayed low at 4.1 per cent.
Even so, hiring remains well below the average monthly gains of 166,000 seen in 2023 and 2024, and far below the 491,000 a month recorded during the 2021-2022 hiring boom after the COVID-19 lockdowns. Overall, the latest claims data suggests the US labour market remains steady, with layoffs low and hiring continuing at a slower pace.
With PTI Inputs
- Ends
