US unemployment claims fall to 196,000, lowest since mid-July

U.S. unemployment insurance claims fell to 196,000 for the week ending September 12, marking the lowest level since mid-July. This figure was lower than the 207,500 to 208,000 range anticipated by economists.

The decline in initial claims, which dropped by 10,000 from the previous week, suggests that layoffs remain rare and the labor market is maintaining stability. The four-week moving average of claims also decreased to 203,250.

Additionally, continuing claims—the number of people receiving ongoing benefits—fell to 1.73 million, the lowest level since early 2024. While hiring has remained modest, the data indicates a trend of low layoffs as businesses remain cautious about reducing staff following previous labor shortages.