U.S. jobless claims edge lower as layoffs remain subdued

Initial claims for U.S. unemployment benefits fell slightly last week, suggesting employers are still hesitant to cut workers. The Labor Department said firsttime filings dropped to a seasonally adjusted 197,000 for the week ending Sept. 26, down 1,000 from the previous week and below economists’ expectations. Separate data from Challenger, Gray & Christmas showed announced layoffs declined in September, with companies reporting 43,281 job cuts. That was down 39% from August and 20% from a year earlier, while yeartodate planned layoffs remained at their lowest level since 2022. The reports point to a labor market that is cooling only gradually, with fewer layoffs even as hiring conditions remain uncertain.