US Jobless Claims Fall Below Expectations as Layoffs Stay Low

Fewer Americans filed for unemployment benefits last week, signalling that layoffs remain limited even as the US job market shows signs of cooling.

New claims for jobless aid fell by 9,000 to 198,000 for the week ending January 10, according to the US Department of Labour. The figure came in well below economists’ expectations of 215,000.

Weekly claims are viewed as a near real-time gauge of layoffs and suggest employers are still holding on to workers. The four-week moving average also declined, dropping by 6,500 to 205,000.

The data arrive as hiring momentum weakens. Employers added just 50,000 jobs in December, while the unemployment rate edged down to 4.4%. Job openings also fell to 7.1 million in November, reinforcing what economists describe as a “low hire, low fire” labor market.

Policy uncertainty tied to tariffs under President Donald Trump and the lingering impact of higher interest rates have weighed on hiring. The Federal Reserve has cut rates three times, most recently by a quarter point, to support the economy.

Fed Chair Jerome Powell has warned the job market may be weaker than headline figures suggest, noting employment data could be revised lower. Recent layoff announcements from UPS, General Motors, Amazon, and Verizon highlight ongoing pockets of strain.

Continuing claims also declined, falling to 1.88 million, adding to evidence that while hiring has slowed, widespread job losses have yet to materialize.

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