The number of Americans filing new applications for unemployment benefits fell unexpectedly last week, signaling continued resilience in the U.S. labor market despite higher energy costs and broader economic uncertainty.
Initial claims for state unemployment benefits declined by 1,000 to 197,000 in the week ended Sept. 26, according to the U.S. Department of Labor. The previous week’s figure was revised to 198,000.
Economists had expected claims to rise to about 200,000.
Claims Approach Historically Low Levels
The latest reading was the lowest since claims reached 189,000 in mid-July, a level described as the lowest in 57 years.
The data indicate that layoffs remain limited even as businesses contend with elevated energy costs, uncertainty surrounding the conflict with Iran, changing expectations for Federal Reserve interest rates and an unsettled trade environment.
Strong corporate profits and resilient domestic demand have helped support employment, while companies appear cautious about reducing their workforces amid uncertainty about the economic outlook.
Continuing Claims Fall to Lowest Since 2023
Continuing claims, which measure the number of people receiving unemployment benefits after an initial filing, also declined.
They fell by 11,000 to 1.701 million in the week ended Sept. 19, reaching their lowest level since April 2023.
The decline suggests that the labor market continues to absorb workers relatively effectively even as other indicators point to some moderation in hiring demand.
Earlier labor-market data showed U.S. job openings falling to a five-month low in August, while hiring and layoffs remained broadly stable. Taken together, the figures indicate a labor market in which companies have become more cautious about adding workers but have yet to significantly increase job cuts.
