01.10.202612:42:40UTC+00US Jobless Claims Fall to Lowest Level Since July

The number of Americans applying for unemployment benefits declined by 1,000 to 197,000 in the week ended September 26, according to the US Department of Labor. This was below market expectations of 200,000 and down from a revised 198,000 in the prior week. New claims are now near their lowest levels since mid-July, when they touched a 57-year trough of 189,000, underscoring the continued resilience of the US labor market despite mounting headwinds linked to the US–Israeli war with Iran, which has driven diesel prices to record highs.

Economists note that solid corporate profits and firm domestic demand are helping protect workers from layoffs. At the same time, many employers appear to be adopting a wait-and-see stance in the face of elevated energy costs, uncertainty surrounding the conflict in Iran, the prospect of further Federal Reserve rate hikes, and unsettled trade policy that could add to cost pressures.

Continuing claims declined by 11,000 to 1.701 million in the week ended September 19, marking their lowest level since April 2023.