Initial jobless claims in the United States fell unexpectedly in the week ending mid-last month, dropping by 10,000 to 196,000, the Labor Department said Thursday in Washington. Economists surveyed by Bloomberg had forecast a rise to 207,000.
Claims remain at a multi-decade low, reinforcing signs of a tight labor market even as the Federal Reserve has moved to tighten monetary policy. The August jobs report had also surprised to the upside, with employment rising far more than expected.
Employment data carries particular weight for the Fed because a strong labor market sits alongside price stability at the heart of its dual mandate. On Wednesday, the central bank raised its benchmark rate for the first time since the summer of 2023, increasing it by 25 basis points to a target range of 3.75% to 4.00%.
The fresh claims data adds to a picture of labor-market resilience that gives the Fed room to continue its restrictive stance, though persistent tightness could also prolong higher borrowing costs for consumers and businesses.
