In a positive sign for the US labor market, initial jobless claims dropped for the third consecutive week, hitting their lowest level since May.
The Labor Department reported Thursday that claims fell by 12,000 to a seasonally adjusted 216,000 in the week ending October 26. This latest decline surpasses economist forecasts, which had anticipated a slight rise of 3,000 to a total of 230,000 claims.
The number of claims based on actual filings, unadjusted for seasonal factors, decreased to 200,132. Additionally, continuing claims—those filed by individuals already receiving unemployment benefits—dropped by 26,000 to 1.86 million for the week ending October 19, reflecting stable employment levels.
Economists note that initial claims had previously spiked to 260,000 in early October following disruptions from Hurricane Helene. However, claims have now returned to pre-hurricane levels, suggesting minimal stress in the labor market.
Despite this optimistic labor data, stock markets were set to open lower on Thursday, and the yield on the 10-year Treasury note fell to 4.29%.
Market Watch contributed to this report.
