WASHINGTON — Applications for U.S. unemployment benefits reached 199,000 in the week ending Aug. 1, according to Labor Department data, marking the third consecutive week below the 200,000 threshold.
The four-week moving average for initial claims fell to its lowest level since September 2022, smoothing out weekly volatility to reveal a labor market that continues to resist deterioration.
The prior week's reading, ending July 25, came in at 197,000—a rebound of 9,000 from the preceding period but still below the median market expectation of 200,000.
The week ending July 18 saw claims drop to 187,000, the lowest level recorded in 2026, down 22,000 from the prior week's revised level of 209,000.
Continuing claims, which track individuals receiving benefits after their initial application, fell by 7,000 to 1,782,000 for the week ending July 18.
Since the economic recovery from the pandemic downturn, weekly claims have generally fluctuated between 200,000 and 250,000. The sustained period below that range points to strong demand for labor.
Federal Reserve Chair Kevin Warsh has said labor market conditions remain central to the central bank's monetary policy decisions. Sustained low jobless claims support the view that the economy can absorb higher interest rates without significant job losses.
