New U.S. jobless claims fell sharply to 189,000 last week, the lowest level in more than 50 years, according to the U.S. Department of Labor.

The decline suggests layoffs remain very low despite economic uncertainty tied to higher energy prices and the ongoing Iran war.

Economists note the labor market is in a “low-hire, low-fire” state, with hiring slowing but job losses also limited.

Inflation pressures remain elevated, driven by rising gas prices, even as the Federal Reserve holds interest rates steady due to uncertainty, PBS has reported.

Overall, the economy shows steady growth and resilience, but underlying risks and uneven hiring trends persist.