US jobless claims fall to 197,000 amid slowing hiring

U.S. weekly initial jobless claims fell to 197,000 for the week ending October 3, lower than the expected 200,000. This figure remains near historically low levels, suggesting that while layoffs remain minimal, the labor market is experiencing a period of reduced hiring dynamism.

Economists describe the current environment as one of low hiring and low layoffs. While companies are largely retaining existing staff, new job creation has slowed, with only 29,000 jobs added in September compared to 133,000 in August. Consequently, the duration of unemployment has risen, with the median time spent unemployed reaching 11.5 weeks, a near four-and-a-half-year high.

In light of these resilient labor figures and persistent inflation, Federal Reserve Governor Christopher Waller indicated that further interest rate hikes may be necessary to return inflation to the 2 percent target. Waller noted that while the timing of such hikes depends on incoming economic data, the central bank may implement increases over an acceptable period rather than at every consecutive meeting.