Applications for US unemployment benefits decreased by 10,000 to 196,000 in the week ended September 12, according to data released by the Labor Department on Thursday. This figure represents the lowest level for jobless claims since July and is one of the lowest readings since 1969. The period included the Labor Day holiday, which can sometimes introduce fluctuations in the data.
This drop in initial claims signals ongoing stability in the labor market. The four-week average, which helps to smooth out weekly volatility, also fell to 203,250 for the week ending September 12, down from 206,000 the previous week. Economists had anticipated claims to be around 206,000, as per the Action Economics/Haver Analytics Survey, making the reported 196,000 a more significant decrease than expected.
Furthermore, recurring claims, or continuing claims, dropped by 39,000 to 1.730 million in the week ending September 5. This is the lowest level for continuing claims since January 2024 and the second-lowest since May 2023. The insured unemployment rate consequently edged down to 1.1% in the week of September 5, marking its first decline since April 25.
Layoffs continue to be rare, with businesses generally reluctant to shed staff given past labor shortages. The US job market has remained robust, even amid factors such as higher gasoline prices. While employers are adding jobs, the pace has moderated compared to the 2021-2022 hiring boom. Monthly job creation averaged 80,000 this year, an improvement from 9,700 in 2025, but still below the 166,000 monthly average seen in 2023 and 2024.
