Fewer Americans are losing their jobs than at almost any point in the past five decades, but those who do are waiting longer to get hired. Initial jobless claims fell to 194,000 for the week ending October 17, the Department of Labor reported October 22, while continuing claims rose to 1.728 million.
Key Takeaways
- Initial jobless claims fell 6,000 to 194,000, down from 231,000 in the same week a year earlier.
- The week of July 18 recorded 189,000 claims, the lowest level since September 1969.
- Continuing claims, which track people still collecting benefits, rose 25,000 to 1.728 million for the week ended October 10.
- In September, 1.9 million Americans had been unemployed for 27 weeks or more, 27.1% of all unemployed people.
- Another 4.5 million people were working part time because they could not find full-time work or had their hours cut.
- Average hourly pay reached $37.81 in September, up 3.0% from a year earlier.
Job Security Is Strong for Americans Who Are Employed
For most workers, the headline number is good news. Initial jobless claims count the people filing for unemployment benefits for the first time, which makes them a weekly snapshot of layoffs. At 194,000, claims are well below the 212,000 weekly average of the past year and just above the July low that marked the fewest claims since 1969.
In practical terms, employers are holding onto their staff. A worker with a job today faces a lower risk of a layoff than in most years on record, and the four-week average of 197,750 shows the trend has held for more than a single week.
Job Seekers Face a Longer Wait in a Low-Hire, Low-Fire Market
The picture is different for people looking for work. Economists describe the current job market as low hire, low fire: companies are not cutting many jobs, but they are not adding many either. Continuing claims rose 25,000 to 1.728 million, a sign that people already out of work are staying on benefits longer.
Payroll data shows why. Employers added only 29,000 jobs in September, well below the average monthly gain of 45,000 over the prior year. That slow pace, following the economy adding just 29,000 jobs in September, means fewer openings for the 7.1 million Americans counted as unemployed. Of those, 1.9 million have been searching for six months or longer.
Millions More Want Work Than the Unemployment Rate Shows
The 4.2% unemployment rate does not capture everyone struggling to find work. In September, 4.5 million people were working part time for economic reasons, meaning they wanted full-time jobs but had their hours cut or could not find full-time positions.
Another 5.8 million people outside the labor force said they want a job but had not searched recently enough to be counted as unemployed. Within that group, 414,000 were discouraged workers who believed no jobs were available for them.
Paychecks Are Growing Slowly
For workers who stay put, pay is still rising, but gradually. Average hourly earnings for private-sector employees rose 5 cents in September to $37.81, a gain of 0.1% for the month and 3.0% over the past 12 months. In a market where switching jobs is harder, many workers are relying on raises from their current employer rather than a move.
Health Care Is Adding Jobs While Finance Sheds Them
Opportunities depend heavily on the field. Health care added 17,000 jobs in September, continuing its upward trend, though at a slower pace than its 12-month average. Financial activities moved the other way, with employment down 129,000 since May 2025, mostly at insurance carriers. Job seekers in shrinking industries may face a longer search than those with skills in growing ones.
Why Jobless Claims and the Unemployment Rate Tell Different Stories
The two measures count different people. Jobless claims include only those who file for state unemployment benefits. The unemployment rate comes from a monthly household survey that counts everyone without a job who is actively looking and available to work, whether or not they receive benefits. That is why claims can sit near historic lows while the unemployment rate holds at 4.2%.
What American Workers Should Watch Next
Two releases will show whether the pattern is shifting. The next weekly jobless claims report arrives Thursday, October 29. The October jobs report, which covers the same week as this latest claims data, is scheduled for Friday, November 6, at 8:30 a.m. ET. A rise in initial claims would signal more layoffs, while stronger payroll growth would mean more openings for job seekers.
FAQs
What are jobless claims?
Jobless claims are first-time applications for state unemployment benefits. The Department of Labor publishes them every Thursday, and they serve as a weekly measure of how many workers are being laid off.
How long does it take to find a job right now?
Search times vary widely, but long searches are common. In September, 1.9 million Americans, or 27.1% of the unemployed, had been looking for work for 27 weeks or more, according to the Bureau of Labor Statistics.
What does low hire, low fire mean?
A low-hire, low-fire job market is one where employers make few layoffs but also add few new jobs. Workers who have jobs tend to keep them, while people looking for work face fewer openings and longer searches.
What is the current unemployment rate?
The U.S. unemployment rate was 4.2% in September 2026, and it has stayed between 4.1% and 4.3% since March. The October rate will be released on November 6.
Does the unemployment rate only count people collecting benefits?
No. The unemployment rate counts everyone without a job who is actively looking and available to work, whether or not they receive unemployment insurance. Jobless claims, by contrast, count only people who file for benefits.
