Rising sales and a labor shortage are deterring job cuts. Jobless claims haven't been this low since 1969.

Businesses aren't hiring lots of people, but they are extremely reluctant to shrink their workforces with sales rising and the economy still expanding.

The last time layoffs in the U.S. were as low as they are now, NASA was landing astronauts on the moon, young Americans were rocking out at Woodstock and President Richard Nixon was moving into the White House.

So-called initial jobless claims, filed by people who lose jobs, totaled less than 200,000 for the third week in a row - a feat last accomplished in 1969.

"Layoffs remain historically low and have, if anything, declined further this year," said chief U.S. economist Stephen Stanley of Santander Capital Markets.

The ultralow level of jobless claims is another sign of a gradually strengthening labor market and possibly even a growing shortage of labor.

Businesses aren't hiring lots of people, but they are extremely reluctant to shrink their workforces with sales rising and the economy still expanding.

New jobless claims in the last three weeks totaled 199,000, 198,000 and 189,000 after adjusting for seasonal swings in employment. By contrast, new claims averaged 223,000 in the same three-week period a year earlier.

"These are levels indicative of a sturdy labor market," economists Robert Kavcic and Shelly Kaushik of BMO Capital Markets wrote.

Nela Richardson, chief economist at the large payroll processor ADP, said people who switch jobs have seen a notable bump-up in salaries. That's a sign businesses are willing to poach employees from other companies to fill key roles.

More people switch jobs when the labor market improves.

The job market, however, is not totally on fire. Far from it.

Hiring picked up in first half of 2026, but last year saw the fewest new jobs created in any year in which the economy was not in recession. ADP also reported the smallest increase in new jobs in July in six months.

"The primary point of weakness in the labor market is that new entrants are having a hard time finding a job, especially fresh college graduates," said Thomas Simons, U.S. economist at Jefferies.

Economists say uncertainty spawned by the Trump tariffs, the Iran war, the spike in oil prices and the acceleration in artificial intelligence have curtailed the number of people businesses are hiring.

An X factor is the freeze on immigration. The lack of new labor supply could be contributing to a shortage of labor, at least in some industries such as leisure and hospitality.

If labor becomes really hard to find, however, and if companies decide they need to hire lots of new workers to keep pace with a growing economy, wages should begin to rise.

So far there's little sign of that. Worker pay is rising just over 3% a year, barely keeping up with inflation.

"The upshot is that despite potential signs of a pickup in employment growth, the labor market won't be a source of inflationary pressure this year," said economist Matthew Martin of Oxford Economics.

Will layoffs and jobless claims stay quite as low as they are now? Probably not.

Economists say carmakers have either shortened or skirted the usual temporary summer layoffs to retool their plants because of robust sales.

Even this move is a sign of strong demand for labor, however, and reflects the unwillingness of companies to resort to layoffs, temporary or not.

-Jeffry Bartash