The number of Americans filing new unemployment claims fell to 194,000 in the week ended 17 October 2026, approaching levels last seen nearly six decades ago and signalling continued resilience in the US labour market despite slower hiring and economic uncertainty.
Data released by the US Department of Labor on Thursday, 22 October, showed that initial claims declined by 6,000 from the previous week. Economists had expected 200,000 claims, making the latest figure stronger than anticipated.
Claims have remained at or below 200,000 for six consecutive weeks, suggesting employers are largely retaining existing workers despite rising energy costs and uncertainty surrounding the conflict involving the United States, Israel and Iran.
Christopher Rupkey, chief economist at FWDBONDS, said tighter labour availability linked to immigration policies had encouraged businesses to hold on to their existing employees because replacing them had become more difficult.
However, hiring conditions remain less encouraging. The number of people continuing to receive unemployment benefits rose by 25,000 to 1.728 million in the week ended 10 October.
The figures point to a labour market characterised by relatively few layoffs but limited recruitment, a pattern economists describe as a “low-hire, low-fire” environment.
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Rising oil prices and the prospect of higher borrowing costs could put further pressure on employment in 2027. Nevertheless, the latest claims data suggest that widespread job losses have yet to emerge despite mounting economic headwinds.
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