U.S. Initial Jobless Claims Fall to 194,000, a Three-Month Low

Initial jobless claims in the U.S. fell by 6,000 to a seasonally adjusted 194,000 for the week ended October 17, the Labor Department reported Thursday, marking a three-month low and coming in below economists' forecast of 200,000. The four-week moving average, a less volatile measure, dropped to 197,750, its lowest level since 2022. The data covered the survey period for the October nonfarm payrolls report, indicating limited layoffs during the month. Economists attribute the resilience to strong domestic demand and corporate profit growth, though war and tariff uncertainty continues to restrain hiring. Continuing claims rose by 25,000 to 1.728 million for the week ended October 10, a six-week high. The median duration of unemployment reached 11.5 weeks in September, near a four-and-a-half-year high, underscoring a "low-hiring, low-firing" labor market. September nonfarm payrolls added just 29,000 jobs, down from 133,000 in August, with unemployment at 4.2%. The Fed raised rates by a quarter point in September to a 3.75%-4.00% range and is expected to hold next week.