US weekly jobless claims near 57-year lows, underscore labor market stability
SPY•Initial jobless claims fell 6,000 to 194,000 in the week ended October 17, staying at or below 200,000 for six straight weeks. Continuing claims rose 25,000 to 1.728 million.
1. Claims remain low
Initial claims for state unemployment benefits fell 6,000 to a seasonally adjusted 194,000, below economists’ 200,000 forecast. The reading was near the 189,000 level reached in mid-July, the lowest since 1969.
2. Hiring outlook mixed
Continuing claims increased 25,000 to 1.728 million in the week ended October 10. The report’s claims average fell between the September and October payroll survey weeks, which could point to stronger payroll gains in October, though economists described hiring as sluggish and the labor market as “low-hire, low-fire.”
3. Risks and rate outlook
Economists said low layoffs reflected strong domestic demand and a smaller workforce, while uncertainty from the Middle East conflict and tariffs had stymied hiring. Some warned that higher rates and tighter financial conditions could weaken labor demand next year. Economists expected the Federal Reserve to hold rates at its next meeting and raise borrowing costs again in December.
