US unemployment claims dip to 206,000 as layoffs continue to remain rare

Washington (AP) — Slightly fewer Americans filed for unemployment claims last week, with the Labor Department reporting a dip to 206,000, according to the latest figures. The four-week average of claims also saw a modest decline, settling at 206,000. These figures represent a slight reduction from the previously revised count of 207,000.

Jobless claims remain at historically low levels, and layoffs continue to be relatively rare. The American job market has remained robust despite rising gasoline prices since the start of the Iran conflict on February 28. Despite these challenges, businesses have been cautious about layoffs, opting instead to hire new staff. So far this year, employers have added an average of 80,000 jobs per month, including a notable 162,000 positions added in August.

This hiring trend marks a significant improvement over the dismal job growth of less than 10,000 monthly positions in 2025. However, the pace of hiring remains below the 166,000 monthly jobs created on average in both 2023 and 2024, and far short of the 491,000 jobs added per month during the 2021-2022 hiring boom that followed the COVID-19 lockdowns.