Jobless claims rose to 197,000 last week, up 9,000 from the prior week

The previous week's figure was revised up by 1,000, from 187,000 to 188,000. The four-week moving average, which smooths week-to-week volatility, fell to 202,750, a decrease of 5,000 from the prior week's revised average of 207,750.

On a seasonally unadjusted basis, actual initial claims totaled 175,573 for the week ending July 25, a decrease of 17,803, or 9.2%, from the prior week. The Labor Department noted that seasonal factors had anticipated a larger decrease of 25,633, or 13.3%. Initial claims in the comparable week in 2025 stood at 193,790.

Continuing claims — a measure of insured unemployment — fell to 1,782,000 for the week ending July 18, a decrease of 7,000 from the prior week's revised level. The insured unemployment rate held at 1.2% for that week, unchanged from the prior week. A year earlier, the rate was 1.3% and the volume was 1,936,000.

The four-week moving average for continuing claims was 1,797,500, a decrease of 6,000 from the prior week's revised average.

Among states, New Jersey posted the highest insured unemployment rate for the week ending July 11 at 2.7%, followed by Puerto Rico at 2.6% and Rhode Island at 2.3%.

For the week ending July 18, the largest decreases in initial claims came in New York, which saw a drop of 17,156, attributed to fewer layoffs in transportation and warehousing, health care and social assistance, and educational services. Michigan fell by 4,974, with fewer layoffs in manufacturing, while California dropped 4,242, Texas fell 2,354, and Pennsylvania declined 2,266, with Pennsylvania citing fewer layoffs in accommodation and food services, transportation and warehousing, and administrative support industries. Louisiana recorded the largest increase, up 346.

Initial claims filed by former federal civilian employees totaled 418 for the week ending July 18, a decrease of 52 from the prior week. Claims filed by newly discharged veterans totaled 412, an increase of 28.