US Jobless Claims Fall to 194,000, Lowest Since July
Key Facts
US initial jobless claims fell to 194,000 in the week ended October 17, according to Labor Department data released on October 22, 2026, reaching their lowest level since July as layoffs declined. The reading was below expectations of 200,000, according to EL7's economic calendar. Claims for the previous week, ended October 10, were revised to 200,000 from the department's initial estimate of 199,000. The latest reading remained above the 189,000 recorded in the week ended July 18, the benchmark for comparison with the decline in claims in midsummer. Claims thus returned to their lowest levels since July, as economists who spoke to Reuters attributed the decline in layoffs to factors including corporate profit growth and strong domestic demand.
The decline in initial claims extended to their moving average, which stood at 197,750 in the week ended October 17, according to the Labor Department. The average fell by 1,000 from the previous week's revised level of 198,750. On a non-seasonally adjusted basis, initial claims totaled 172,390 during the same week. The previous week's unadjusted reading was 191,711, according to figures the department provided in its weekly release. These claims fell by 19,321, alongside the decline in the moving average of seasonally adjusted claims.
Seasonally adjusted continuing claims, meanwhile, rose to 1,728,000 in the week ended October 10, according to the Labor Department. That was an increase of 25,000 from the previous revised reading of 1,703,000 for the week ended October 3. The moving average of continuing claims also rose, reaching 1,711,000 in the week ended October 10. That average stood at a revised 1,707,000 in the previous week, putting the weekly increase at 4,000. The insured unemployment rate held at 1.1% in the week ended October 10, unchanged from the previous week, despite the rise in continuing claims and their moving average.
The decline in layoffs comes in a labor market where hiring was weak in September, when the US economy added just 29,000 nonfarm jobs, according to the Bureau of Labor Statistics. The unemployment rate remained roughly steady at 4.2% that month. The bureau also lowered its estimate of August job growth to 133,000 from a previously reported increase of 162,000. In explaining the decline in layoffs, economists who spoke to Reuters cited "strong profit growth amid solid domestic demand, and a smaller workforce." Those economists linked the decline in layoffs to a combination of companies' ability to generate profits, sustained domestic demand and a shrinking workforce, alongside September's limited job gains.
The labor market figures come after the Federal Reserve raised its target interest rate range at its September meeting, according to its post-meeting statement. The increase was a quarter of a percentage point, bringing the target range to between 3.75% and 4%. The 4% level represents the upper bound of the range approved by the US central bank at that meeting. The Federal Reserve said in its September statement that "inflation remains elevated." In currency markets, Reuters reported in its coverage on the day the claims data were released that the dollar was little changed against a basket of currencies.
The Federal Reserve holds its next meeting on October 27–28, according to the schedule published on the US central bank's website. Federal Open Market Committee meetings run for two days. A press conference follows the meeting, according to the announced schedule for the upcoming meeting. After that, the Bureau of Labor Statistics releases its October employment report on Friday, November 6, 2026, providing the next monthly reading on jobs and unemployment after the September report. The bureau scheduled the report's release for 8:30 a.m. US Eastern Time.