U.S. Jobless Claims Fall to 194,000, Lowest Since Mid-July
Key Facts
Seasonally adjusted initial jobless claims in the United States fell to 194,000 in the week ended October 24, according to EL7 data released on October 29. The reading was below market expectations of 199,000 and down from 195,000 in the previous week, according to EL7's record. An Associated Press report described the reading as the lowest since mid-July. The agency said claims had remained at 200,000 or below for seven consecutive weeks and had not exceeded 230,000 in any week since the start of the year through the report. The figures put layoffs at limited levels, but come amid other signs of slowing hiring.
The four-week average of claims fell to 196,750, according to an Associated Press report published on October 29. The average smooths out week-to-week volatility and offers a broader reading than a single week's figure. In the previous report, published on October 22, the average was 197,750, according to U.S. Labor Department data. That report recorded 194,000 claims for the week ended October 17, after revising the previous week's reading from 199,000 to 200,000. The report's publication date therefore differs from the week measured by the claims, and the previous report's reading differs from the October 29 reading despite the matching weekly figure of 194,000. The latest reading covers the week ended October 24, explaining why it was described as the lowest since mid-July.
Claims reflect the layoff side of the labor market, while jobs data point to a cooling pace of hiring. Employers added 29,000 jobs in September, compared with 133,000 in August, according to figures cited by the Associated Press. The agency also said the number of people unemployed for more than six months reached a five-year high. Another agency report described the labor market as "slow hiring, few layoffs." The figures show a divergence between weekly claims remaining low and job growth declining from one month to the next. Meanwhile, monthly job gains averaged 68,000 during 2026 through the October 29 report, compared with an average of 9,700 jobs a month in 2025.
The Associated Press said consumer spending remained resilient and a surge in artificial intelligence investment supported economic growth. That provides a backdrop in which growth indicators coexist with slowing hiring, while weekly claims remain low. On October 28, the Federal Reserve kept its target interest rate range at 3.75% to 4%, in a 10-to-2 vote. The two dissenting members voted to raise the range by a quarter percentage point. The Fed said job gains had kept pace with labor force growth and the unemployment rate had changed little, adding that inflation remained elevated. The rate decision places the labor market within a broader assessment that brings together job growth and inflation, without changing the limited signal weekly claims provide about layoffs alone.
Markets are awaiting the third-quarter Employment Cost Index, scheduled for release by the U.S. Bureau of Labor Statistics on October 30 at 8:30 a.m. Eastern time. The index covers labor costs during the third quarter of 2026. The bureau also scheduled its September Job Openings and Labor Turnover Survey for November 3 at 10 a.m. Eastern time. October employment figures are due on November 6. The Associated Press cited a FactSet survey forecast for 55,000 jobs to be added during the month. These releases will add data on labor costs, job openings and hiring to the picture drawn by weekly claims and employment and unemployment figures.