US weekly jobless claims fall to lowest level since mid-July
Initial US unemployment claims fell to 197,000 last week from a revised 198,000, according to the Labor Department. The four-week average also declined, while claims have remained below 220,000 for most of the year, indicating that layoffs remain low even as hiring growth is modest.
The number of Americans filing new claims for unemployment benefits fell last week to its lowest level since mid-July, suggesting that layoffs remain limited in a generally stable labour market. The Labor Department said on Thursday that initial claims declined to 197,000 from a revised 198,000 the previous week. The four-week average, which reduces the effect of weekly fluctuations, fell by 2,500 to 200,000.
Claims are closely watched as an indicator of layoffs and possible changes in the direction of the labour market. They have remained below 220,000 for most of this year, a historically low level. The figures come as businesses and consumers face higher energy prices.
Companies have remained reluctant to dismiss workers after experiencing labour shortages following the end of pandemic lockdowns, although hiring has been modest by the standards of recent years. Employers, including companies, government agencies and non-profit organisations, added an average of 80,000 jobs a month this year through August. August recorded a stronger-than-expected increase of 162,000 jobs.
The performance is an improvement on 2025, when average monthly job creation was 9,700. However, current hiring remains below the average of 166,000 monthly jobs recorded in 2023 and 2024, and well below the 491,000 monthly average during the 2021-22 post-lockdown hiring boom. The Labor Department is due to release the September jobs report next week.
A FactSet survey of forecasters expects employers to have added 90,000 jobs and the unemployment rate to have remained at 4.1%.
This independently written report is based on information supplied by the named publisher. Vertrix News has not independently verified the source report.