Weekly jobless claims drop to 194,000 as hiring steadies

The Labor Department reported on Thursday that initial unemployment claims for last week totaled 194,000. This figure represents the lowest level recorded since mid-July. The count is a decrease from the previous week, which was revised to 195,000.

Economists track these applications as an indicator of layoff activity. The four-week average of claims, a metric used to smooth out weekly fluctuations, fell to 196,750. Claims have finished at or below 200,000 for seven consecutive weeks. No single week this year has seen claims exceed 230,000.

Employers across companies, government agencies, and nonprofits have added an average of 68,000 jobs per month this year. Last month, the economy added 29,000 positions. This pace is faster than the 2025 average of 9,700 jobs per month, a period hampered by high interest rates and trade policies under President Donald Trump.

Economic growth has been supported by steady consumer spending and increased investment in artificial intelligence. The data suggests that most Americans maintain job security as layoff rates remain low.

The Labor Department will release the official employment report for October on November 6. According to a survey of forecasters by FactSet, analysts expect the data to show the economy added 55,000 jobs last month.