US Jobless Claims Fall to 194,000, Lowest in Three Months

U.S. unemployment claims dropped to 194,000 last week, the lowest level in three months, down from 200,000 the prior week, the Labor Department reported. The decline signals layoffs remain low despite elevated energy prices tied to the conflict with Iran that began Feb. 28. The four-week average, which smooths weekly volatility, fell to 197,750. Claims have not exceeded 230,000 in any single week this year, underscoring persistent labor-market tightness. The job market has settled into a "low-hire, low-fire" pattern. Employers have added an average of 68,000 jobs a month this year, up from 9,700 in 2025 but well below the 166,000 monthly average in 2023-2024 and the 491,000 recorded during the 2021-2022 post-lockdown boom. The unemployment rate ticked up to 4.2% last month.