U.S. Jobless Claims Drop to 196,000 Lowest Since July

The United States Department of Labor reported that weekly jobless claims fell to 196,000 for the week ending September 12. This figure represents a decrease of 10,000 from the previous week and marks the lowest level since mid-July, significantly beating economist forecasts of 207,500. The four-week moving average declined to 203,250, while continuing claims fell to 1.73 million for the week ending September 5, lowering the insured unemployment rate to 1.1%.

Regional data showed mixed results across the country. New York experienced the sharpest decline in claims, while Michigan and California saw increases. In Ohio, the Ohio Department of Job and Family Services reported that initial unemployment claims fell by 295 to 4,019 for the week of September 6-12. Continued claims in Ohio also dropped by 1,207, totaling 33,984.

Overall labor market growth remains modest, averaging 80,000 new jobs per month this year. While this is a recovery from a dismal 2025—where high interest rates and trade policies limited monthly job creation to an average of 9,700—growth remains below the levels seen in 2023 and 2024.