Businessupdated 1h ago2 min read
US Initial Jobless Claims Fall To 189,000, Labor Department Says
“pointing to labor market resilience”
“do not necessarily imply strong hiring”
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Initial jobless claims fell to 189,000 for week ending Oct 31, below expectations of 197,000. Four-week moving average dropped to 194,750, signaling continued subdued layoffs.
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Claims hit 57-year low
The Labor Department said US initial jobless claims fell from an upwardly revised 195K to 189K in the week ending October 31, below market expectations of 197K. The Labor Department also said the previous week’s reading was revised up from 194K, and the four-week moving average declined from 197.00K to 194.75K. Reuters reported that initial claims for state unemployment benefits fell 6,000 to a seasonally adjusted 189,000 for the week ended October 31, matching the 189,000 level touched in mid-July.
Reuters said the claims report showed the number of people receiving unemployment benefits after an initial week of aid increased 23,000 to a still-low seasonally adjusted 1.718 million during the week ended October 24. Reuters added that the insured unemployment rate held steady at 1.1%.
Hiring plans rise, layoffs subdued
Challenger, Gray and Christmas said US-based employers announced 43,994 job cuts in October, up 2% from September, while planned layoffs dropped 71% compared to October 2025. Challenger, Gray and Christmas said employers announced plans to hire 444,692 workers last month, a 57% jump from October 2025. Andy Challenger said, "Employers are holding on to the workers they have heading into the holidays, and the hiring they are announcing is largely short-term, seasonal work,".
Andy Challenger also said, "Companies want the flexibility to meet holiday demand without adding permanent headcount." Reuters said the government reported 1.06 open jobs for every unemployed person in September, up from 1.02 in August.
Productivity and policy stakes
The Labor Department’s Bureau of Labor Statistics said nonfarm productivity increased at a 3.6% annualized rate in the third quarter after advancing by an upwardly revised 2.1% pace in the second quarter.
Reuters said the surge in productivity depressed labor costs for the first time in more than a year and reinforced views that the labor market was not a source of inflation.
Reuters said benign wage inflation gave the Federal Reserve more latitude to focus on rising price pressures stemming from the US-Israeli war with Iran.
Stephen Stanley said, "AI has yet to make a noticeable contribution. Productivity gains have been fairly consistent over the past several years,".
Reuters said the unemployment rate is forecast unchanged at 4.2% and that the Chicago Fed is projecting the jobless rate at 4.14%.