New applications for U.S. unemployment benefits fell last week, keeping claims near historically low levels and providing fresh evidence that employers remain reluctant to cut workers despite elevated energy prices and restrictive monetary policy.
Initial claims for state unemployment benefits declined to a seasonally adjusted 197,000 for the week ended September 26.
That leaves claims close to levels rarely seen during the past several decades.
Continuing claims, a measure of the number of people receiving benefits after an initial week of aid, fell by 11,000 to 1.701 million.
Separate data from Challenger, Gray & Christmas showed U.S.-based employers announced 43,281 job cuts in September.
That was 18% below August and 20% lower than September 2025.
Employers have announced 573,195 layoffs so far in 2026, down 39% from the comparable period last year.
The numbers reinforce a central feature of the current U.S. labor market: hiring has moderated, but companies have generally avoided widespread layoffs.
There are still signs of caution.
Employers announced plans to hire 90,787 workers during September, a large increase from August but 23% below a year earlier. According to Challenger data reported by Reuters, hiring intentions for September were the weakest for that month since 2011.
That distinction matters for Federal Reserve policy.
A labor market characterized by low layoffs but restrained hiring can remain stable while still becoming more difficult for unemployed workers seeking new positions.
Thursday’s claims figures arrive one day before the September nonfarm-payroll report, which will carry substantially more weight for markets and monetary policy.
The Fed is balancing above-target inflation against evidence that parts of the economy are cooling.
If Friday’s employment report confirms continued resilience, policymakers will have more room to keep interest rates restrictive. A substantial downside surprise would shift attention toward the risk that high borrowing costs are beginning to damage employment.
For now, Thursday’s data show little evidence of a broad wave of U.S. job losses.
