Unemployment claims drop to 189,000, the fewest since mid-July

WASHINGTON (AP) — Fewer Americans applied for unemployment benefits last week as layoffs remain scarce and most workers enjoy job security.

The Labor Department reported Thursday that 189,000 people sought jobless aid last week, the fewest since mid-July and down from 195,000 the week before. The four-week average of claims, which smooths out week-to-week ups and downs, dipped to 194,750.

Applications for jobless benefits are a proxy for layoffs, and economists watch them closely because they can provide signs of where the job market is headed.

Claims have remained at historically low levels in the year to date, never topping 230,000 in a single week. They’ve come in at or below 200,000 for eight straight weeks.

So far this year, employers — companies, government agencies and nonprofits — have been adding an average of 68,000 jobs a month, including a disappointing 29,000 last month. That is modest by historic standards but an improvement on a lackluster 2025 when monthly job creation averaged 9,700 as high interest rates and President Donald Trump’s unpredictable trade policies discouraged hiring.

Consumer spending has remained resilient and a surge in investment in artificial intelligence has lifted economic growth.

The Labor Department will release hiring numbers for October on Friday. They are expected to show that the economy added 65,000 jobs this month, according to a survey of forecasters by the data firm FactSet. Unemployment is expected to remain at a low 4.2%.