US jobless claims fall to lowest level since July, labour market stays resilient

The number of Americans filing new claims for unemployment benefits fell to 197,000 last week, the lowest level since mid-July, as layoffs remained subdued and the labour market showed continued resilience, AP reported on Thursday, citing the US Labor Department.

Initial jobless claims fell from a revised 198,000 in the previous week, while the four-week moving average declined by 2,500 to 200,000, according to the Labor Department.

Jobless claims, which economists used as an indicator of layoffs, remained below 220,000 for most of the year and stayed at historically low levels, AP reported.


The US labour market remained resilient despite higher energy prices that had put pressure on businesses and consumers since fighting with Iran began on February 28. Businesses remained cautious about layoffs after facing labour shortages following the end of pandemic lockdowns, while hiring continued at a modest pace.

Employers, including companies, government agencies and nonprofits, added an average of 80,000 jobs a month so far this year, including 162,000 jobs in August. That compared with an average monthly gain of 9,700 jobs in 2025, when high interest rates and uncertainty over President Donald Trump's trade policies weighed on hiring, AP reported.

The Labor Department was due to release the September jobs report next week. A FactSet survey of forecasters expected employers to have added 90,000 jobs in September, while the unemployment rate was expected to have remained at 4.1%.

Hiring remained below the average monthly job gains of 166,000 recorded in 2023 and 2024. The pace was also far below the 491,000 monthly jobs added on average during the 2021-22 hiring boom that followed the Covid-19 lockdowns.