The number of Americans filing new claims for unemployment benefits increased marginally by 1,000 to a seasonally adjusted 199,000 in the week ended October 10, according to the US Labour Department. The figure came in below economists’ expectations of 200,000 claims, marking the fifth consecutive week that applications remained below the 200,000 threshold.
The data reflects a relatively stable labour market characterised by low layoffs but sluggish hiring, a situation economists describe as a “low-hire, low-fire” environment. The Federal Reserve’s Beige Book report noted that labour market conditions remained largely unchanged between late August and early October, with labour supply generally sufficient to meet demand. However, shortages persisted in specialised, technical and skilled trade occupations, while some companies reduced staffing or delayed hiring amid productivity gains from artificial intelligence investments.
Meanwhile, continuing claims, which indicate the number of people receiving unemployment benefits beyond their initial week of assistance, fell by 4,000 to 1.71 million in the week ended October 3. Despite the decline, the median duration of unemployment reached 11.5 weeks in September, nearing a four-and-a-half-year high. Rising consumer inflation, tariff-related pressures and higher prices linked to the US-Israeli war with Iran continue to weigh on the economic outlook, while the unemployment rate stood at 4.2% in September.
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