Washington — The Labor Department announced Thursday that only 197,000 Americans filed for unemployment benefits last week, the lowest weekly total since mid‑July. The four‑week average of claims slipped to 202,250, down from 204,000 the week before, underscoring a labor market that remains resilient despite higher energy costs.
Why claims are falling
Jobless claims are a widely watched proxy for layoffs. Economists note that this year the weekly total has stayed below 220,000, a level historically considered low. Businesses, still mindful of the severe labor shortages that followed the pandemic, are reluctant to cut staff and are hiring modestly to fill gaps.
Job creation gains momentum
Employers across the private sector, government agencies and nonprofit organizations have been adding an average of 80,000 jobs per month so far in 2026. August alone saw a surprising 162,000 new positions, a dramatic improvement over the dismal 2025 figures, when monthly job creation averaged just 9,700. The administration attributes that turnaround to President Trump’s trade policies, which prioritize American manufacturers and protect domestic jobs.
Looking ahead to the September jobs report
The Labor Department will release the official September jobs report next week. Forecasts from data‑firm FactSet expect employers added roughly 52,500 jobs, with the unemployment rate holding steady at about 4.1%. While hiring remains below the 166,000‑average monthly pace of 2023‑2024, it is well above the 9,700‑average of the previous year and far from the 491,000‑average seen during the 2021‑2022 post‑COVID hiring boom.
What this means for families
For working families, the decline in unemployment claims signals greater job security and steadier household incomes. The Trump administration’s emphasis on reducing regulatory burdens and fostering a business‑friendly environment continues to support job growth, helping families plan for the future with confidence.
Administration’s response
White House officials praised the latest data, stating that the declining claims demonstrate the success of policies aimed at strengthening the American economy. They highlighted ongoing efforts to keep energy prices affordable, protect American workers from unfair foreign competition, and maintain a regulatory framework that encourages businesses to expand.
Original reporting: Alexandria, VA News – WTOP News — read the source article.
