US Jobless Claims Fall to 189,000, a 57-Year Low, as Layoffs Stay Scarce

The number of Americans filing new claims for unemployment benefits fell last week to the lowest level in 57 years, the Labor Department said on Thursday, in a fresh sign that layoffs remain scarce even as hiring cools.

Initial claims for state unemployment benefits fell 6,000 to a seasonally adjusted 189,000 for the week ended October 31. Economists polled by Reuters had forecast 196,000 claims. The reading matched the 189,000 level touched in mid-July, which was the lowest since 1969.

Claims have stayed mostly below 200,000 since mid-September and have now come in at or below 200,000 for eight straight weeks, according to the Associated Press. The four-week average of claims, which smooths out weekly swings, dipped to 194,750. Claims have not topped 230,000 in any week this year.

Employers hold on to workers

Low layoffs, helped by strong consumer demand and profit growth, are anchoring the labor market, Reuters reported. Hiring is a different story. Companies have stayed cautious about adding permanent staff, held back in part by uncertainty over the US-Israeli war with Iran.

The government reported this week that there were 1.06 open jobs for every unemployed person in September, up from 1.02 in August. Some economists read that as a sign the labor market is starting to tighten. Others say claims look so low partly because the labor force itself has shrunk during the immigration crackdown, not because job cuts have vanished.

Longer waits for some who lose work

The number of people still receiving benefits after a first week of aid rose 23,000 to 1.718 million in the week ended October 24. That figure, known as continuing claims, is a rough proxy for hiring, and it stayed low by historical standards. Still, the reluctance to hire permanently means some people who lose a job wait a long time to find the next one. Benefits also run out after 26 weeks in most states, which keeps the continuing claims count lower than the full number of people out of work.

A separate report on Thursday from Challenger, Gray and Christmas showed US employers announced 43,994 job cuts in October, up 2 percent from September but down 71 percent from October 2025. Layoffs were the lowest for any October since 2023. Employers announced plans to hire 444,692 workers last month, up 57 percent from a year earlier and the highest for any October since 2009, although most of those plans are for seasonal work.

"Employers are holding on to the workers they have heading into the holidays, and the hiring they are announcing is largely short-term, seasonal work," said Andy Challenger, chief revenue officer at Challenger, Gray and Christmas.

So far this year, employers have added an average of 68,000 jobs a month, including 29,000 in September, a modest pace by historical standards, the Associated Press reported. Consumer spending has stayed resilient, and heavy investment in artificial intelligence has lifted economic growth.

The claims report has no bearing on the October jobs report due on Friday, since it falls outside that survey period. Forecasters expect the Friday report to show 65,000 new jobs for October and the unemployment rate unchanged at 4.2 percent.