Initial claims for U.S. unemployment benefits dropped unexpectedly to a near four-month low for the week ending September 14th, as per the Labor Department's report released on Thursday.
The report indicated that first-time jobless claims decreased to 219,000, a reduction of 12,000 from the prior week's adjusted figure of 231,000.
Economists had anticipated that jobless claims would remain steady at the initially reported 230,000 for the preceding week.
This unforeseen decline brings jobless claims down to their lowest point since they reached 216,000 in the week concluding May 18th.
"Despite the drop to the lowest level since May last week, we should not overinterpret one week's decline as seasonal factors might be influencing the figures," stated Nancy Vanden Houten, Lead U.S. Economist at Oxford Economics.
She further noted, "The Federal Reserve has signaled a likely reduction in rates by another 50 basis points this year to sustain current labor market conditions, and a single week’s claims data does not alter that outlook."
The Labor Department also reported that the less volatile four-week moving average dipped to 227,500, a drop of 3,500 from the previous week's adjusted average of 231,000.
Continuing claims, representing the number of individuals receiving ongoing unemployment benefits, also declined by 14,000, reaching 1.829 million for the week ending September 7th.
The four-week moving average of continuing claims fell to 1,844,250, a decrease of 6,500 from the prior week's revised average of 1,850,750.
