U.S. weekly unemployment claims fall to 197,000, lowest since mid-July

The Labor Department announced that 197,000 individuals applied for unemployment benefits last week, the lowest weekly count since mid-July and down from a revised 198,000 the week before. The four-week rolling average of claims fell to 202,250, reflecting historically low levels that have stayed under 220,000 for most of the year. Analysts use these filings as an indirect measure of layoffs, suggesting that the U.S. labor market remains resilient.

Even with rising energy prices and the fallout from the February 28 conflict with Iran, companies have been reluctant to cut staff and are hiring, albeit at a modest pace of roughly 80,000 jobs per month, including a notable 162,000 in August. This follows a weak 2025 when monthly job creation averaged just 9,700 amid high interest rates and unpredictable trade policies. The upcoming September jobs report is expected to show 52,500 new jobs and an unemployment rate near 4.1%.