US jobless claims dip to 209,000 as labour market stays resilient despite layoffs

• The four-week moving average of claims rose to 206,250, while continuing claims fell 38,000 to 1.83 million, suggesting layoffs remain limited even as firms like Amazon and UPS announce job cuts
• The Federal Reserve held interest rates steady at 3.50%-3.75%, with Chair Jerome Powell noting labor market conditions may be stabilizing after gradual softening
• Unemployment rate stood at 4.4% in December, but hiring intentions have weakened according to Conference Board measures, with consumer sentiment about job prospects deteriorating amid policy and technology concerns

Summary: US Jobless Claims Dip to 209,000 as Labour Market Remains Resilient

Key Data Points

US initial jobless claims fell by 1,000 to 209,000 for the week ending January 24, 2026, according to the Labor Department. The reading exceeded economist expectations of 205,000 but remains near historically low levels. The four-week moving average rose by 2,250 to 206,250, while continuing claims dropped by 38,000 to 1.83 million (lowest since September 2024). The current unemployment rate stands at 4.4%, down from 4.5% in November.

Market Implications

Despite high-profile layoffs from major companies including United Parcel Service and Amazon, unemployment filings have not surged significantly. This suggests companies remain cautious about workforce reductions amid lingering labor shortages and economic uncertainty around trade policy, tariffs, and technological shifts.

Federal Reserve Chair Jerome Powell indicated labor market conditions may be stabilizing after gradual softening. The Fed maintained its benchmark interest rate in the 3.50%-3.75% range, adopting a wait-and-see approach on inflation and employment trends.

Emerging Concerns

While layoffs remain limited, hiring appears to be weakening. Consumer confidence regarding job prospects has deteriorated, reflecting concerns about policy changes and AI investment impacts. The Conference Board reported softer hiring intentions among businesses in January.

Seasonal factors, including the Martin Luther King Jr. holiday and recent winter storms, may have distorted weekly readings. The upcoming January employment report will provide clearer insights into labor market momentum, though potential government shutdown delays could affect the release timing.

The data depicts a labor market in "fragile equilibrium" rather than crisis.