WASHINGTON — The number of Americans filing for unemployment benefits decreased slightly last week, underscoring the ongoing strength of the US labor market and the continued rarity of layoffs.
According to a report released Thursday by the Labor Department, new filings for jobless benefits dropped to 206,000, down from a revised figure of 207,000 for the previous week. The four-week moving average, which analysts prefer for smoothing out weekly fluctuations, also eased modestly to 206,000.
Jobless claims are closely monitored by economists as a leading indicator of employment trends. Over the past year, filings have largely remained within a historically tight band between 200,000 and 230,000 per week.
The American workforce has proven resilient despite the burden of rising gasoline prices, which have strained both businesses and consumers since hostilities with Iran began on Feb. 28.
Layoffs remain scarce, in part because employers are mindful of the labor shortages that emerged after pandemic lockdowns ended. Companies are continuing to hire, though at a measured pace compared to recent years. So far this year, employers—including private companies, government agencies, and nonprofits—have added an average of 80,000 jobs per month. This includes a stronger-than-expected gain of 162,000 positions in August.
While this represents an improvement over 2025, when monthly job creation averaged fewer than 10,000 amid high interest rates and unpredictable trade policies under President Donald Trump, the current pace still trails the averages seen in 2023 and 2024. During those years, employers created an average of 166,000 jobs per month. The pace was even faster during the 2021-2022 hiring boom following the COVID-19 pandemic, when an average of 491,000 jobs were added monthly.
80k jobs per month? That feels sluggish compared to the 166k pace in 2023. Are we really recovering fully?
Finally, some good economic news! The labor market is clearly more resilient than many critics predict. Solid data.