US weekly jobless claims fall; layoffs drop in September
SPY•Initial US jobless claims fell 1,000 to 197,000 in the week ended September 26, while planned layoffs dropped 18% to 43,281 in September. Hiring plans rose from August but were 23% lower than a year earlier.
1. Claims and layoffs decline
Initial claims for state unemployment benefits slipped 1,000 to a seasonally adjusted 197,000 for the week ended September 26, below economists’ 200,000 forecast. Continuing claims fell 11,000 to 1.701 million in the week ended September 19.
2. Hiring plans remain subdued
Planned layoffs by US-based employers fell 18% to 43,281 in September and were down 20% from a year earlier. Employers announced 573,195 layoffs in the first nine months of the year, down 39% from the same period in 2025. Hiring plans increased to 90,787 in September from 12,325 in August, but were 23% below a year earlier and the lowest September tally since 2011.
3. Employers cite uncertainty
Andy Challenger of Challenger, Gray & Christmas said companies were in a “wait-and-see period,” citing high energy costs, uncertainty over the war in Iran, a rate hike that could make hiring more expensive and likely increases in healthcare costs. The Federal Reserve raised its benchmark rate by 25 basis points last month to a 3.75%-4.00% range. A survey of economists forecast payrolls would increase by 90,000 in September, with unemployment holding at 4.1%.
