New applications for U.S. unemployment benefits edged lower in the latest reporting week, while the number of people continuing to receive benefits also declined, according to data released Thursday by the U.S. Department of Labor.
The October 1 weekly claims report said seasonally adjusted initial claims totaled 197,000 for the week ending September 26. That was down 1,000 from the prior week’s revised 198,000 and below the 200,000 median forecast reported by Reuters.
The four-week moving average, which smooths some of the volatility in the weekly figure, fell by 2,500 to 200,000. The prior four-week average was revised up by 250 to 202,500.
Continuing claims also moved lower
Continuing claims, officially called insured unemployment, are reported with a one-week lag. The advance seasonally adjusted figure fell by 11,000 to 1.701 million for the week ending September 19. The previous week was revised down to 1.712 million from 1.719 million.
The four-week average of continuing claims declined by 18,500 to 1.72375 million. The insured unemployment rate held at 1.1%.
These figures cover people receiving unemployment insurance through state programs and do not represent every person without work. Initial claims are a timely measure of new benefit applications, while continuing claims can offer a separate view of how long displaced workers remain on benefit rolls.
What changed in the latest release
- Initial claims: 197,000, down 1,000 from the revised prior week.
- Four-week initial-claims average: 200,000, down 2,500.
- Continuing claims: 1.701 million, down 11,000.
- Insured unemployment rate: 1.1%, unchanged.
Reuters reported on October 1 that claims remain close to multidecade lows even as employers face higher energy costs and other economic uncertainty. The Associated Press separately described the new-claims figure as the lowest since mid-July.
A separate private report from Challenger, Gray & Christmas, cited by Reuters, said U.S.-based employers announced 43,281 planned job cuts in September—18% fewer than in August and 20% fewer than a year earlier. Announced hiring plans increased from August but remained below the September 2025 level. Those company announcements are not the same measure as actual unemployment-benefit applications, so the two data sets should not be read as interchangeable.
How to read the labor-market signal
The latest claims data point to limited new layoffs during the measured week. They do not, by themselves, show whether hiring is accelerating. Claims can stay low even when employers are cautious about adding workers, and the series is regularly revised as states submit updated information.
Other reports provide different pieces of the labor-market picture. AskNovus previously covered ADP’s estimate of 90,000 private jobs added in September. The federal employment report uses a separate methodology and is scheduled for release on Friday, October 2.
The labor numbers also arrive alongside fresh measures of household income, spending and inflation. The Bureau of Economic Analysis reported this week that August consumer spending rose while 12-month PCE inflation reached 3.4%. Together, these releases will inform debate about the economy, but no single report settles the outlook.
What comes next
The next weekly claims report is scheduled for Thursday, October 8. As with this release, the most useful comparison will be the updated level, revisions to prior weeks and whether the four-week averages continue to move in the same direction.
Sources checked October 1, 2026: U.S. Department of Labor weekly claims release; Reuters; Associated Press.
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