New applications for U.S. unemployment benefits fell sharply last week, suggesting layoffs remained low.
The number of new claims fell 23,000 to 206,000, well below market expectations, signaling continued resilience in the labor market.
The four-week moving average, which smooths out weekly fluctuations, also fell to 219,000.
Jobless claims data is often considered a near-real-time indicator of labor market conditions and the level of layoffs.
While new claims fell, the number of people receiving benefits continued to rise to 1.87 million, reflecting a slight slowdown in hiring.
Overall, the figures suggest the U.S. labor market remains stable despite signs of moderate hiring momentum.
