New applications for unemployment benefits slipped to 197,000 for the week that ended Oct 3, the lowest level since July. That makes four consecutive weeks below 200,000, a run the Labor Department says hasn't been matched since the 1960s. The takeaway: layoffs remain scarce across much of the job market.
Jobless claims are the highest-frequency read on the labor market there is. Market Briefs reads the data free every morning.
The four-week moving average of new claims slipped to 198,000, its weakest reading since September 2022, smoothing out week-to-week noise. Notably, before seasonal adjustments, initial claims actually climbed by nearly 12,000, with California, Illinois and New York leading the increase. In the prior week, continuing claims climbed to 1.72 million, signaling that more individuals remain on benefits.
Low claims paired with more moderate September payroll growth point to a labor market where employers are largely hanging onto staff while being careful about adding headcount amid higher costs. That mix hints at limited layoffs even as hiring cools, which can keep paychecks flowing and support spending. If you track consumer strength to gauge where demand is headed, these readings are a useful pulse check on how resilient the real economy still looks.
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