US jobless claims drop as new year layoffs remain low
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The news: Applications for US unemployment benefits fell unexpectedly last week, signalling that despite weaker hiring the labour market is yet to see a rise in layoffs.
The numbers: According to data released by the US Labor Department on Thursday, initial claims decreased by 9,000 to 198,000 in the week ending 10 January 2026.
Economists polled by the Wall Street Journal were expecting to see 215,000 claims during the week.
Continuing claims, a proxy for the number of people receiving benefits declined to 1.88 million during the week ending 3 January, down from 1.9 million the week prior.
The context: The figures suggest that while firings are not increasing at a meaningful rate for the start of the year, data may still be affected by Christmas holiday-related fluctuations.
The sources: US Labor Department, WSJ, Bloomberg
