by Emmitt Barry, Worthy News Washington D.C. Bureau Chief
(Worthy News) – New applications for unemployment benefits fell again last week, dropping to one of the lowest levels in decades and adding fresh evidence that the U.S. labor market remains resilient despite war-driven energy costs, tariffs and persistent concerns over inflation.
The Labor Department reported Thursday that initial jobless claims fell to 197,000 for the week ending Sept. 26, down 1,000 from the previous week’s revised 198,000. The figure was below economists’ expectations of roughly 200,000 and marked the lowest level since mid-July.
The four-week moving average, which smooths out weekly volatility, fell by 2,500 to 200,000. Continuing claims — the number of Americans still receiving unemployment benefits after an initial week — declined by 11,000 to 1.701 million, their lowest level since April 2023.
Reuters reported that weekly claims are hovering near levels last seen in 1969, underscoring the historically low pace of layoffs. Separately, planned layoffs announced by U.S. employers fell 18% in September and were down 20% from a year earlier.
The latest numbers arrive alongside other encouraging economic indicators. Employers added a stronger-than-expected 162,000 jobs in August, while unemployment stood at 4.1%. Consumer spending has also remained resilient despite sharply higher energy costs stemming from the ongoing conflict with Iran.
Trump Touts Economy and Inflation Progress
President Donald Trump and the White House have seized on the recent data as evidence that the administration’s economic program is producing results.
In an economic assessment released Thursday, the White House said inflation has been easing on several household expenses while arguing that Trump’s tax, trade, energy and deregulation policies are strengthening American industry and putting more money into workers’ pockets. The administration pointed to declines in prices for some staples, prescription drugs, motor vehicle insurance and electricity while highlighting gains in manufacturing and private-sector employment.
The White House also says more than one million private-sector jobs have been created during Trump’s second term and has highlighted increased manufacturing employment and investment in new U.S. factories, energy projects and technology infrastructure.
Trump has repeatedly argued that his policies are bringing prices down after the inflation surge of previous years, recently declaring, “I’m bringing the prices down, way, way down.”
The inflation picture, however, remains mixed. While recent consumer inflation readings have been cooler than expected, factory-level price pressures increased in September as manufacturers confronted higher energy costs, tariffs and supply-chain disruptions. Those pressures could eventually filter through to consumers if they persist.
Still, Thursday’s unemployment report offered another sign of underlying strength: American companies remain reluctant to shed workers even amid significant geopolitical and economic uncertainty.
With initial unemployment claims now around levels rarely seen in more than half a century, the labor market remains one of the strongest pillars of the U.S. economy heading into the final months of 2026.
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Source: Worthy News
