By Jeffry Bartash
The number of people collecting unemployment benefits is declining
Job seekers aren't having an easy time finding work.
Federal Reserve chief Jerome Powell said the U.S. jobs market seems to have stabilized after a big letdown last year, justifying the Fed's decision to leave interest rates unchanged. The latest jobless-claims report appears to support his claim.
The number of Americans who applied for unemployment benefits in late January stayed in the low 200,000s, a historically low figure that shows relatively few layoffs in the economy.
New claims totaled 209,000 in the seven days ending Jan. 24, the government said Thursday.
New applications in the prior week increased to 210,000 from 200,000. All figures are seasonally adjusted.
Rising jobless claims are one of the earliest warning signs of a weakening economy, but they've been very low for years and show no upward trend.
Perhaps even more positive news is that the number of people already collecting jobless benefits appears to have plateaued - and they might even be declining
These so-called continuing claims fell by 38,000 to 1.83 million, touching the lowest level in almost a year and a half.
Not long ago, continuing claims were pushing toward the 2 million mark for the first time in 10 years - if the COVID-19 pandemic era is excluded.
&#34;In the labor market, indicators suggest that conditions may be stabilizing after a period of gradual softening,&#34; Powell said Wednesday after the Fed voted 10-2 to leave a key U.S. interest rate unchanged.
Key details: New jobless claims fell in 41 of the 53 states and territories that report these figures to the federal government.
Big picture: If there were big trouble brewing for the economy, a telltale sign would be rising jobless claims.
Instead, layoffs are extremely low. So is the unemployment rate, despite a big drop in hiring. The economy is likely to keep expanding at a healthy pace so long as the labor market remains stable.
Market reaction: The Dow Jones Industrial Average DJIA and S&amp;P 500 SPX were set to rise in Thursday trading.
-Jeffry Bartash
This content was created by MarketWatch, which is operated by Dow Jones &amp; Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
01-29-26 0903ET

Federal Reserve chief Jerome Powell stated that the U.S. labor market has stabilized, supported by low jobless claims. The latest report shows new claims for unemployment benefits at 209,000, indicating few layoffs. Continuing claims have also decreased to 1.83 million, the lowest in over a year. Powell noted that despite a drop in hiring, the economy is likely to continue expanding as long as the labor market remains stable. Market reactions indicate a rise in the Dow Jones and S&P 500.

- The job market in the U.S. is stabilizing, with the number of new unemployment claims remaining historically low at 209,000.  
- Continuing claims for jobless benefits have declined to 1.83 million, the lowest level in nearly a year and a half, indicating fewer layoffs.  
- Federal Reserve Chair Jerome Powell's comments suggest that a stable labor market may support continued economic expansion.

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Fed chief Powell says a frail U.S. labor market has stabilized. Low jobless claims back him up.