US employers are largely holding back on layoffs, with fresh data indicating only a marginal decline in jobless claims last week, keeping the labour market anchored.
The US Department of Labour reported on September 10, 2026 that initial claims for state unemployment benefits, a direct proxy for layoffs, dipped by 1,000 to a seasonally adjusted 2,06,000 for the week ended September 5. The figure was just above the 2,05,000 estimate of economists polled by Reuters, while the previous week’s number was revised up to 2,07,000.
The trend points to limited job cuts. Since mid-July, weekly claims have been hemmed into a narrow band of 1,89,000 to 2,12,000, suggesting that companies are retaining staff after a soft patch from late spring through summer. The four-week moving average for initial claims, which smooths out weekly volatility, also eased by 1,500 to 2,06,000.
On a year-on-year basis, layoff filings are notably lower — down from 2,59,000 in the comparable week last year.
Continuing claims, which capture people still receiving benefits after the first week and indicate hiring momentum, also inched down by 1,000 to 1.774 million in the week ended August 29. The insured unemployment rate remained steady at 1.2 per cent.
The low-layoff picture aligns with last week’s payrolls data showing nonfarm employment jumped by 1,62,000 in August, the largest gain in five months, after adding just 21,000 in July. The unemployment rate was unchanged at 4.1 per cent.
However, while layoffs remain contained, re-employment is taking longer. The median duration of unemployment stayed near 4.5-year highs in August, indicating that although fewer workers are being let go, those who are out of work are facing extended job searches.
