Initial claims for US unemployment benefits fell by 1,000 last week to 206,000, the US Department of Labor said Thursday in Washington. The previous week's figure was revised up by 1,000. Economists had forecast 205,000 claims on average.
On a longer-term basis, claims remain at a low level, pointing to a resilient labor market. The latest August employment report from the US government beat expectations, with the change in nonfarm payrolls coming in well above forecasts.
Employment data carries particular weight in Federal Reserve monetary policy decisions because a strong jobs market is part of the central bank's dual mandate alongside price stability. The Fed recently left its benchmark interest rate unchanged, but some economists said a rate increase next week is now a possibility given the strength of recent labor market readings.
