No wave of layoffs in the US: initial jobless claims fall to 197,000, hitting a new low since July

Zhihu Tong Finance APP noted that the number of Americans applying for unemployment benefits last week declined slightly, reaching the lowest level since July, indicating that the scale of layoffs in the job market remains limited. Data released by the U.S. Department of Labor on Thursday showed that, for the week ending October 3, initial claims for unemployment benefits fell by 2,000 to 197,000. This is the fourth consecutive week that the number of claims has remained below 200,000.

U.S. Initial Jobless Claims Fall to Lowest Level Since July

The number of initial claims remains near the lowest levels since the 1960s. Combined with the more moderate increase in non-farm payrolls in September, the subdued number of claims suggests the labor market is in a state where employers, facing rising costs, remain cautious about expanding hiring but are still retaining existing employees.

The four-week moving average of initial claims, which helps smooth out fluctuations, fell to 198,000 last week, the lowest since September 2022.

Unadjusted for seasonal fluctuations, initial claims last week increased by nearly 12,000, with the main increases coming from California, Illinois, and New York.

Continuing claims, which serve as a proxy for the number of people receiving benefits, rose to 1.72 million the previous week.