Initial jobless claims in the United States declined to 197,000 from a revised 198,000 the previous week, according to the Labour Department. The four-week average of claims dropped by 2,500 to 200,000, representing the lowest level since mid-July. The latest data from the week ended September 26 showed claims falling by 1,000 to 197,000, with the median estimate from economists being 200,000. As per the Associated Press, the number of people applying for U.S. unemployment benefits dipped last week to the lowest level since mid-July as layoffs remain low and most American workers enjoy job security.
Continuing claims, which serve as a proxy for the number of people receiving benefits, decreased by 11,000 to 1.7 million in the week ended September 19, marking the lowest level since March 2023. This represents a significant improvement from previous weeks and indicates healthy labor-market conditions. The four-week moving average of new applications for jobless benefits declined to a seven-week low of 200,000, helping smooth out volatility in the data. Before adjusting for seasonal factors, initial claims dropped in most states, including Hawaii, Georgia and Texas.
Despite higher energy prices that have squeezed businesses and consumers since the Iran conflict began February 28, the American job market has remained sturdy. So far this year, claims have mostly stayed below 220,000 - historically low levels. The U.S. on Tuesday reported that U.S. employers posted fewer job openings in August, according to the Labor Department's Job Openings and Labor Turnover Survey (JOLTS). The JOLTS report also showed that layoffs fell and the number of people quitting their jobs — a sign of confidence in their prospects — retreated slightly in August. The JOLTS report's measure of gross hiring ticked up modestly in August but remains at low levels. Businesses are showing reluctance to let go of staff, remembering the labour shortages that followed the end of pandemic lockdowns.
Employers have been adding an average of 80,000 jobs per month so far this year, including a surprising 162,000 in August. This represents an improvement from the lackluster 9,700 monthly job creation average recorded in 2025, when high interest rates and President Trump's unpredictable trade policies discouraged hiring. However, hiring remains well below the 166,000 monthly jobs created during the 2023-2024 period and the 491,000 monthly jobs recorded during the 2021-2022 hiring boom that followed COVID-19 lockdowns. As per Matthew Martin, senior U.S. economist at Oxford Economics, jobless claims continue to defy expectations and remain exceedingly low, dovetailing with the JOLTS reports' layoff rate which shows that while businesses aren't hiring at a rapid pace, they are reticent to let their current crop of workers go.
The Labour Department will release the September jobs report next week, which is expected to show employers added 90,000 jobs and the unemployment rate remained low at 4.1%, according to a survey of forecasters by data firm FactSet. The government's monthly jobs report on Friday is expected to show the unemployment rate held at 4.1% in September, with payrolls seen rising about 85,000 in the wake of the second-biggest monthly increase since 2024. The job market resilience comes as businesses navigate ongoing economic uncertainties while maintaining cautious hiring practices. The hiring remains well below the historical averages, reflecting a more measured approach to workforce expansion in the current economic environment.
