US initial jobless claims fell to 189,000 in the week ended October 31, the lowest level since July, the Labor Department said on Thursday — a fresh sign that layoffs remain low even as hiring slows.
Claims fell by 6,000 from a revised 195,000 the week before, and came in well below the 196,000 economists had expected. The insured unemployment rate, which measures the share of covered workers receiving benefits, held at 1.1%.
A labour market that is cooling, not breaking
The claims figures arrive a day before the main event: the Labor Department’s October employment report, due at 8:30 a.m. Eastern Time on Friday, November 6. Forecasters expect the economy to have added between 62,000 and 65,000 jobs in October, with the unemployment rate holding at 4.2%.
One caution applies to reading the two reports together. Reuters noted that the claims report has no bearing on Friday’s employment figures, because the claims week falls outside the survey period used for the monthly report. The jobs numbers will instead reflect hiring in the week containing October 12.
Private payrolls processor ADP reported on November 4 that private employers added 86,000 jobs in October, above the 69,000 economists polled by Reuters had expected. September’s ADP figure was revised up to 86,000.
What it means for households
KPMG chief economist Diane Swonk said employers might not need to add a single job to keep the jobless rate from rising, adding: “The labor market is shrinking.” Employment gains have averaged just 68,000 jobs a month this year, and September’s payroll gain of 29,000 was one of the softest readings of the year.
For workers, the picture is mixed: few people are losing their jobs, but finding a new one is taking longer. For the Federal Reserve, which meets in December, the data supports the case that the labour market is not generating fresh inflation pressure — even as traders expect another interest-rate increase.
Related: US Jobs Report Today: Economists Expect 65,000 New Jobs in October | US Private Payrolls Jump 86,000 in October, Beating Forecasts
Sources: Reuters via TrendXNow, “US Jobless Claims Fall to 189,000, Lowest Since July” (5 Nov 2026); Reuters via SRN News jobs preview (6 Nov 2026).
