Initial claims for unemployment benefits in the United States dropped to their lowest level since July, indicating that layoffs remain rare within a broadly stable labor market.
Data released by the Labor Department on Thursday showed that initial jobless claims edged down by 1,000 to 197,000 for the week ending September 19. This ranks among the lowest readings since 1969.
Continuing claims, a proxy for the number of people receiving benefits, were essentially flat at 1.72 million for the week ending September 12, hovering near their lowest level since 2023.
Over the past few months, initial jobless claims have lingered near historic lows, with businesses reluctant to let workers go. At the same time, hiring has been uneven, offering limited opportunities for Americans who feel stuck in their current roles or on the periphery of the job market.
The four-week moving average of new claims, a metric that helps smooth out volatility, fell to 202,250, a six-week low.
Before seasonal adjustment, initial claims rose, driven primarily by increases in California, Hawaii and New York.
Economist Eliza Winger said: "Initial jobless claims remained exceptionally low in mid-September, pointing to stable labor market conditions. The few industries that are cutting jobs appear to be focused on efficiency gains, and we have yet to see signs that higher interest rates are driving layoffs, even in the sectors of the economy most sensitive to interest rates."
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