The number of Americans filing for unemployment benefits is near a 57-year low, government data show.
Hiring momentum has ebbed and flowed this year, but a key theme for the U.S. labor market has been the lack of layoffs, as companies keep their staffing levels intact.
Initial jobless claims fell by 6,000 to 194,000 for the week ending on Oct. 17, according to a Department of Labor report released on Oct. 22. This is close to the 189,000 logged in July, the lowest number since 1969.
Last week’s reading was revised slightly higher to 200,000, the first time it had touched that level since early September.
Economists had forecast 200,000 claims.
After stripping out week-to-week volatility, the four-week average dipped below 198,000, also below the consensus estimate.
Employment conditions have been stable heading into the busy, holiday-driven fourth quarter, with the unemployment rate hovering near a historically low 4 percent.
However, for those out of work, the job hunt remains challenging.
September’s long-term unemployment rate—jobless for 27 weeks or longer as a percent of the unemployed—came in at 27 percent, far above pre-COVID-19 pandemic levels.
The Department of Labor also reported on Oct. 22 that continuing claims—which economists use as a proxy for hiring—rose by 25,000 to a six-week high of 1.73 million.
It could also reflect recipients exhausting their benefits, since many states cap eligibility at 26 weeks.
But payroll growth stalled last month. The economy added a fewer than expected 29,000 jobs, and private-sector readings suggest that hiring has slowed.
For the four weeks ending on Oct. 3, private employers added an average of 18,500 jobs per week, down from 26,000 in the previous period, according to payroll processor ADP.
Despite mixed labor market signals, economists at The Conference Board say the Federal Reserve can still focus on inflation.
“The September employment data were strong enough to give the Fed ample reason to conclude that the labor market remains stable and the economy is operating at full employment,” they said in a note.
The Fed is expected to leave interest rates unchanged at next week’s Federal Open Market Committee policy meeting after last month’s rate hike. Traders expect the central bank to raise rates by a quarter point at the December policy meeting.
Seasonal Hiring
Meanwhile, it is that time of year again: Employers are seeking help for the holidays.
Seasonal job listings are up by about 10 percent from a year ago, said Cory Stahle, an economist at the Indeed Hiring Lab. But larger employers are hiring for part-time roles instead of seasonal workers, he said, suggesting “optimism heading into the final months of 2026.”
“Taken together, it looks like a season in which employers are generally more optimistic about what may come after the holidays, and workers are increasingly seeking a little extra income before the year ends,” Stahle said in an Oct. 15 report.
Amazon said on Oct. 20 that it plans to hire about 300,000 workers for the U.S. holiday season. Other retailers—Macy’s, Target, and Michaels—also plan to hire seasonal team members.
The National Retail Federation estimates retailers will hire between 325,000 and 375,000 seasonal workers this holiday season, a range it said is broadly in line with its estimate last year.
This suggests that companies expect shoppers to open their wallets, although experts at PricewaterhouseCoopers say consumers may be a bit more cautious about spending.
“For retailers, there’s real opportunity in these signs of resilience. Holiday budgets may be shrinking, but consumers are prioritizing their spending on gifts and the traditions that matter to them,” they said in their Holiday Outlook 2026 report.
They also said consumers are projected to spend an average of $708 on gifts this year, down by 2 percent from 2025.
