The number of Americans filing new claims for unemployment benefits fell 6,000 to a seasonally adjusted 194,000 for the week ended October 17, the U.S. Labor Department said on Thursday — a level near 57-year lows that points to low layoffs and a stable labour market.

Source: Reuters via Devdiscourse — US weekly jobless claims near 57-year lows

The reading came in below the 200,000 claims forecast by economists polled by Reuters, and below the previous week's revised figure of 200,000. The four-week moving average, which smooths weekly swings, fell 1,000 to 197,750.

Source: FXStreet — US Initial Jobless Claims dropped to 194K last week

Claims are now within striking distance of the 189,000 level touched in mid-July, which was the lowest reading since 1969, according to the Reuters report. Economists cited in the report say rising profits amid strong domestic demand have been shielding workers from layoffs.

Low-hire, low-fire

The other side of the report was softer: the number of people receiving benefits after an initial week of aid — a proxy for hiring — rose 25,000 to a seasonally adjusted 1.728 million during the week ended October 10. Economists continue to describe the labour market as being in a "low-hire, low-fire" state, and say uncertainty from the war and tariffs on imports has stymied hiring.

The claims data covered the period in which the government surveyed businesses for the nonfarm payrolls component of October's employment report. Payrolls increased by 29,000 jobs in September, after rebounding by 133,000 in August, according to the figures cited by Reuters.

Economists quoted by Reuters also warned that tightening financial conditions and higher interest rates, as the U.S.-Israeli war with Iran fuels inflation, could undercut the labour market next year — a risk workers and employers are watching as the Federal Reserve weighs its next move.