WASHINGTON, DC - JUNE 1: A sign is displayed at the U.S. Department of Labor Frances Perkins Building on June, 2025 in Washington, DC. (Photo by Kevin Carter/Getty Images)

SAN FRANCISCO - Applications for unemployment benefits in the U.S. fell to 196,000 last week, marking the lowest level since mid-July and coming in far below expert expectations. The drop highlights ongoing cross-currents in the economy during a period dominated by concerns over inflation and high prices.

The four-week average of claims, which smooths out week-to-week volatility, dropped to 203,250, the Associated Press reported.

Layoffs remain low and job security for employed Americans remains stable. National employment data indicates a strong preference among employers to retain their current staff.

Despite stable job security, public anxiety regarding automation remains high.

Recently released data from Pew Research shows 71% of Americans fear artificial intelligence will result in fewer jobs.

Meanwhile, 10% believe AI will make no difference, 5% say it will create more jobs, and 14% remain unsure.

Former California Employment Development Department Director Michael Bernick, now an employment lawyer at the Duane Morris law firm, noted that AI has eliminated few non-tech jobs to date.

"So we have this stasis environment in which not a lot of hiring, but not a lot of layoffs," Bernick said. "And it's that lack of layoffs that's resulting in this morning's numbers statewide and nationwide that show unemployment claims very, very low. It just shows you the resilience of the American economy. It is striking how resilient the economy is."

Pregnant women, people with disabilities and others seeking help from California's Employment Development Department say they are waiting for hours on the phone and in long lines at the Oakland office, only to be turned away without assistance.