Jobless claims fell to a five-week low of 201,000. There is still a lot of muscle in the labor market.
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Numbers: The number of Americans filing for unemployment benefits in mid-February fell to a five-week low of 201,000, suggesting the U.S. labor market remains strong.
The government said Thursday that the number of new unemployment claims fell by 12,000 compared to 213,000 the previous week.
The number of new unemployment claims in the new year is 189,000 to 227,000, which is significantly low from a historical perspective.
Economists surveyed by the Wall Street Journal expected new claims to total 216,000 in the seven days ending Feb. 17, based on seasonally adjusted figures.
Big picture: The robust U.S. labor market shows few signs of lethargy.
Low unemployment will likely spur consumer spending and keep the economy out of recession until the Federal Reserve cuts interest rates later this year, as expected.
Key details: New unemployment claims fell in 45 of the 53 states and territories that report these numbers to the federal government. They rose in eight others as well.
On the other hand, the number of people receiving unemployment benefits in the United States decreased by 27,000 to 1.86 million.
These so-called ongoing claims have risen steadily since last year in a sign that people are taking longer to find new jobs. They are now at about the same level as before the pandemic.
In actual or unadjusted numbers, initial unemployment claims have fallen below 200,000 again. This is another sign of the durability of the U.S. labor market.
Market reaction: The Dow Jones Industrial Average DJIA and S&P 500 SPX were set to open higher in trading on Thursday. Stocks rallied due to strong Nvidia NVDA.
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