Weekly Jobless Claims Reach Lowest Level in 2 Months

12:52 PM EDT, 09/25/2025 (MT Newswires) -- Weekly applications for unemployment insurance reached their lowest level in two months, government data showed Thursday, with Oxford Economics saying the report offers "some assurance" that labor market conditions are not weakening.

For the week ended Sept. 20, the seasonally adjusted number of initial claims decreased by 14,000 to 218,000, representing its lowest level since the week through July 19, the Department of Labor said. The consensus was for a 233,000 print in a Bloomberg poll. The previous week's reading was revised up by 1,000 to 232,000.

The four-week moving average totaled 237,500, dropping by 2,750 from the prior week's average, which was revised upward by 250. Unadjusted claims fell by 14,822 on a weekly basis to 180,611.

"The latest jobless claims data offer some assurance that labor market conditions are not deteriorating," Oxford Economics Lead Economist Nancy Vanden Houten said in remarks e-mailed to MT Newswires. Initial claims continue to be consistent with a "low pace" of layoffs, Vanden Houten added.

Earlier this week, Federal Reserve Chair Jerome Powell said policymakers face a "challenging situation," with near-term risks to inflation tilted to the upside and those to employment leaning downside. Fed Vice Chair for Supervision Michelle Bowman said recent data indicate that policymakers are at a "serious risk of already being behind the curve" in addressing a weakening labor market.

Seasonally adjusted continuing claims came in at 1.93 million for the week ended Sept. 13, roughly in line with Wall Street's views. Continuing claims fell by 2,000 from the previous week's upwardly revised level. The four-week moving average fell by 4,500 to 1.93 million from the prior week's average, which was revised up by 2,000, according to the DOL.

"Continued claims are still at a level indicative of a slowing pace of hiring, but have started to trend lower," Vanden Houten said.

Last week, the central bank's Federal Open Market Committee lowered its benchmark lending rate by 25 basis points, noting increased downside risks to employment and signaled further monetary policy easing later in 2025.

"Claims data support our forecast for the (Fed) to remain hold at its October meeting and to delay the next rate cut until December," Vanden Houten said Thursday.

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