US jobless claims fall to 209,000 as lay-offs stay low

US applications for unemployment benefits dropped by 3,000 to 209,000 for the week ending May 16, below the 213,000 forecast by analysts surveyed by FactSet. The Labor Department reported the decline, which reflects persistently low lay-offs despite economic uncertainties. However, the labor market remains in a 'low-hire, low-fire' state, with the unemployment rate at 4.3%. While employers added 115,000 jobs in April, the Iran war has introduced significant uncertainty. The Strait of Hormuz remains closed, oil prices have surged over 50% since late February, and the average US gas price has risen to $4.56 per gallon, potentially discouraging hiring.