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U.S. Jobless Claims Edge Down to 209,000 as Layoffs Stay Low

Seasonal distortions complicate reading of a still-low layoff rate.

Hiring sign is displayed at a office in Schaumburg, Ill., Tuesday, Jan. 5, 2026. (AP Photo/Nam Y. Huh)
A job seeker leaves the job fair for airport related employment at Logan International Airport in Boston, Massachusetts, U.S., December 7, 2021.   REUTERS/Brian Snyder

Overview

  • Initial claims dipped by 1,000 to 209,000 for the week ended Jan. 24, slightly above the 205,000 consensus forecast.
  • The prior week was revised up by 10,000 to 210,000, underscoring choppy year‑end seasonal adjustments and holiday effects.
  • Continuing claims decreased by 38,000 to 1.827 million for the week ended Jan. 17, pointing to limited ongoing insured unemployment.
  • The Labor Department flagged volatility tied to the Martin Luther King Jr. holiday and a recent winter storm, with analysts expecting more noise in coming weeks.
  • UPS and Amazon announced layoffs this week, though economists see little impact on aggregate claims, and a government funding lapse could delay next Friday’s BLS jobs report.