Jobless claims fell to 197,000 last week, marking the lowest level since mid-July and underscoring how rare layoffs have become across the American economy.
The Labor Department released the figures Thursday, showing a slight dip from the revised 198,000 claims filed the prior week. The four-week moving average, which tempers weekly volatility, also declined to 202,250 from 204,000.
These numbers carry weight because unemployment filings serve as an early indicator of layoff activity. Economists track them closely for signals about labor market direction. Throughout this year, weekly claims have largely held below 220,000, a threshold considered historically low.
Meanwhile, the broader job market continues to show resilience. Higher energy prices have pressured both businesses and consumers since late February, yet employers have avoided workforce reductions. Many companies still recall the staffing shortages that emerged after pandemic restrictions lifted, making them hesitant to shed workers.
Hiring persists, though at a more measured pace compared to recent years. Employers across sectors have added roughly 80,000 jobs monthly so far this year, including an unexpected 162,000 positions in August. As a result, the labor market has rebounded considerably from 2025, when monthly job growth averaged just 9,700 amid elevated interest rates and shifting trade policies.
The Labor Department will publish September employment data next week. Forecasters surveyed by FactSet anticipate employers added 52,500 jobs, with unemployment holding steady at 4.1 percent.
Those projections remain below the 166,000 monthly average recorded in 2023 and 2024, and far beneath the 491,000 monthly pace seen during the 2021-2022 post-pandemic hiring surge. Still, the consistent decline in jobless claims suggests American workers retain unusual job security heading into the final months of the year.
