By Basant El-Faramawy
Fewer Americans applied for unemployment benefits last week as layoffs remain scarce and most workers enjoy job security. The Labor Department reported Thursday that 189,000 people sought jobless aid, the fewest since mid-July and down from 195,000 the week before.
The four-week average of claims, which smooths out week-to-week volatility, dipped to 194,750. Applications for jobless benefits are a proxy for layoffs, and economists watch them closely for signals about the job market's direction.
Claims Remain Historically Low
Claims have stayed at historically low levels all year, never topping 230,000 in a single week. They have come in at or below 200,000 for eight consecutive weeks.
Job Market Context
So far this year, employers — companies, government agencies and nonprofits — have added an average of 68,000 jobs a month, including 29,000 last month. That marks an improvement from 2025, when monthly job creation averaged 9,700 amid high interest rates and unpredictable trade policies. Consumer spending has remained resilient, and a surge in artificial intelligence investment has lifted economic growth.
The Labor Department will release October hiring numbers on Friday. Forecasters surveyed by FactSet expect the economy added 65,000 jobs, with the unemployment rate holding at a low 4.2%.
