US Initial Jobless Claims at Over 2-Month Low

The number of people claiming unemployment benefits fell by 2,000 to 197,000 in the week ending October 3, 2026, coming in below market expectations of 200,000 and marking the lowest initial claim count since the 60-year low of 189,000 in mid-July. Continuing claims, a gauge of ongoing unemployment in the US, rose by 17,000 to 1,716,000, remaining relatively close to the more-than-three-year low touched in the previous week. The data extended a period of resilience in the US labor market as the Federal Reserve continues to cite full employment. Meanwhile, initial claims filed by federal employees, which remain in the spotlight due to the administration's push to shrink the public sector, rose by 26 to 395, remaining well below historical levels.

The number of Americans filing for unemployment benefits fell by 1,000 to 197,000 in the week ended September 26, below expectations of 200,000 and down from a revised 198,000, according to the US Department of Labor. Claims reached their lowest level since the 57-year low of 189,000 recorded in mid-July, pointing to continued resilience in the US labor market despite growing headwinds from the US-Israeli war with Iran, which has pushed diesel prices to record levels. Economists say robust corporate profits and resilient domestic demand are helping shield workers from layoffs, while employers appear to be taking a wait-and-see approach amid elevated energy costs, uncertainty over the conflict in Iran, potential Fed rate increases and an unsettled trade policy that could push costs higher. Continuing claims fell by 11,000 to 1.701 million in the week ended September 19, the lowest since April 2023.

The number of people claiming unemployment benefits fell by 10,000 to 196,000 in the second week of September, the least since the 60-year low of 189,000 from July, and well under market expectations of 208,000. Continuing claims, a gauge of outstanding unemployment in the US, fell by 39,000 to 1,730,000 in the first week, the lowest since January of 2024. The data extended the period of resilience in the US labor market as the Federal Reserve cites full employment. Meanwhile, initial claims filed by federal employees, which have added spotlight on the administration's signal to shrink the of public sector, rose by 10 to 398, well below historical levels.