US jobless claims fall to lowest level since July

Initial claims for US unemployment benefits fell to 194,000 in the week ended Oct. 17, the lowest level since July, according to the Labor Department’s Oct. 22 release. The seasonally adjusted figure was down 6,000 from the previous week’s revised 200,000, reinforcing the picture of a labor market with few layoffs.

The four-week average fell 1,000 to 197,750, compared with 227,750 in the comparable period a year earlier. Initial claims stood at 231,000 in the comparable week of 2025.

Continuing claims moved in the opposite direction. Seasonally adjusted insured unemployment rose 25,000 to 1,728,000 in the week ended Oct. 10, while its four-week average increased 4,000 to 1,711,000. Both remained below their year-earlier levels. The insured unemployment rate held at 1.1%.

Employers have been holding onto workers while hiring has remained sluggish, according to Associated Press reporting. The unemployment rate edged up to 4.2% last month. Claims are a proxy for layoffs, so the latest decline points to continued job security rather than, by itself, an acceleration in hiring.

Employers have added an average of 68,000 jobs a month so far this year, up from 9,700 in 2025, AP reported. That remains well below the average of 166,000 monthly jobs added in 2023 and 2024.