US weekly unemployment claims fall to lowest level since mid-July

According to the Labor Department, initial unemployment benefit applications fell to 196,000 last week, marking the lowest weekly count since mid-July and a decline from 206,000 the week before. The four-week rolling average of claims decreased to 203,250, beating the FactSet forecast of 207,500. Economists view these numbers as a proxy for layoff trends, which have stayed within a historically low band of 200,000 to 230,000 over the past year.

The labor market remains resilient despite rising gasoline prices linked to the conflict with Iran that began on Feb. 28. Employers continue to hire modestly, adding an average of 80,000 jobs per month this year, including a surprising 162,000 in August, a marked improvement over the weak 2025 hiring pace.