US initial jobless claims fell by 1,000 to 206,000 in the week ended 5 September, and the four-week average also moved down to 206,000. The insured unemployment rate held at 1.2 per cent in the week ended 29 August as continuing claims slipped to 1.774 million. Claims signal limited layoffs, while broader employment figures show a more measured hiring pace.
Economics & Markets··Morning
Initial claims fell by 1,000
Seasonally adjusted initial claims for US unemployment insurance were 206,000 in the week ended 5 September, according to the Department of Labor. The previous week's level was revised to 207,000, making the weekly decline 1,000. The four-week average, which smooths volatile weekly moves, fell by 1,500 to 206,000. The Associated Press reported that claims have mostly remained between 200,000 and 230,000 over the past year, a historically low range.[1], [2]
Continuing claims also declined
The seasonally adjusted insured unemployment rate was unchanged at 1.2 per cent in the week ended 29 August. The number of people continuing to receive benefits after an initial week fell by 1,000 to 1,774,000, while its four-week average moved down to 1,779,000. Unadjusted claims under state programmes rose 3.0 per cent to 176,567 in the week ended 5 September, compared with the 3.4 per cent increase expected by seasonal factors and 204,862 in the comparable week of 2025.[1]
Layoffs are low while hiring is more measured
The Associated Press reported that layoffs remain rare even as hiring proceeds at a more measured pace than in recent years. Employers added an average of 80,000 jobs a month in 2026, including 162,000 in August. That average is stronger than the pace of fewer than 10,000 jobs a month in 2025 but remains below the 166,000 monthly average in 2023 and 2024. Weekly claims track the current flow of layoffs, while monthly employment figures show the pace of new job creation.[2]