US initial jobless claims fall to just shy of two-year low

The four-week moving average of new applications, a metric that helps smooth out volatility, fell to 207,750.

Applications for US unemployment benefits fell last week to one of the lowest levels in the last two years, suggesting layoffs remain low.

Initial claims decreased by 9,000 to 202,000 in the week ended March 28, according to Labor Department data released Thursday. The median forecast in a Bloomberg survey of economists called for 212,000.

Continuing claims, a proxy for the number of people receiving benefits, rose to 1.84 million in the previous week.

Thursday’s figures, alongside other recent data, illustrate a labor market that is still stuck in a “low-hire, low-fire” phase. Initial claims have hovered at relatively low levels in recent weeks, suggesting employers are holding onto current workers even as hiring has slowed.

Separate data released earlier this week showed hiring in February slowed to the weakest pace in nearly six years. Data earlier Thursday from outplacement firm Challenger, Gray & Christmas Inc. showed in the first quarter of 2026, US employers announced 217,362 job cuts, the lowest total for this period since 2022.

The four-week moving average of new applications, a metric that helps smooth out volatility, fell to 207,750. Initial claims were also lower before adjusting for seasonal factors. Michigan, Georgia and Iowa registered the biggest declines.

The government’s jobs report, due Friday, is expected to show employers added workers at a moderate pace in March and the unemployment rate was unchanged.