The US job market remains resilient, and the number of initial jobless claims fell to a new low since July

The Zhitong Finance App notes that the number of people applying for unemployment benefits in the US fell to its lowest level since July, indicating that layoffs are still rare in the overall stable labor market. According to data released by the Ministry of Labor on Thursday, the number of initial jobless claims dropped slightly by 1,000 to 197,000 in the week ending September 19. This is one of the lowest readings since 1969.

The number of first-time jobless claims in the US falls to a record low

The number of people renewing unemployment benefits (as an alternative indicator for the number of beneficiaries) remained flat in the week ending September 12, at 1.72 million, and hovered near the lowest level since 2023.

Over the past few months, the number of initial jobless claims has been hovering near historic lows, and companies are unwilling to fire employees. At the same time, recruitment is uneven, providing limited opportunities for Americans who feel trapped in existing jobs or on the edge of the job market.

The four-week moving average of new jobless claims — an indicator that helps smooth out fluctuations — fell to 202,250, a six-week low.

Prior to seasonal adjustments, initial jobless claims rose, mainly driven by growth in California, Hawaii, and New York.

Economist Eliza Winger said, “The number of jobless claims in early September was still abnormally low, which indicates a stable labor market situation. A few industries that are laying off workers seem to focus on improving efficiency, and we haven't seen any signs that rising interest rates are driving layoffs, even in the most interest-sensitive sectors of the economy.”