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Jobless claims near the lowest since the 1960s as low-fire trend continues
CNBC • • business
Key Points:
- Initial unemployment claims fell to 194,000 for the week ending Oct. 17, nearing the lowest levels recorded since the late 1960s, indicating employers are retaining workers despite weak hiring.
- Labor market conditions remain stable with modest layoffs, a slight rise in the unemployment rate to 4.2%, and slow payroll growth averaging 69,000 jobs per month in 2026.
- The layoff rate has decreased to 1% over the past year, while job openings have remained relatively flat, suggesting steady but cautious employer behavior.
- Economists note that despite negative consumer sentiment and concerns about AI-related job losses, labor market data points to resilience and stability.
- The Federal Reserve is expected to pause interest rate hikes in October but may raise rates by 0.25% in December as inflation remains above the 2% target, with policymakers viewing the labor market as a strength.
