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The numbers: The number of people who applied for unemployment benefits last week fell to the lowest level in more than three months, reflecting the persistent strength of a U.S. labor in which layoffs have fallen to the lowest level in decades.
Initial jobless claims, a rough way to measure layoffs, dropped 10,000 to 206,000 in the seven days ended July 20, the government said Thursday.
Economists polled by MarketWatch estimated new claims would total a seasonally adjusted 218,000.
The more stable monthly average of new claims declined by a smaller 5,750 to 213,000. The four-week average usually gives a more accurate read into labor-market conditions than the more volatile weekly number.
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What happened: New York reported a raw or unadjusted 13,514 decline in new claims. Georgia, Pennsylvania, Texas and Wisconsin also posted sizable declines.
No state reported an increase of 1,000 or more.
Claims often gyrate after the end of the school year and annual summer retooling by auto makers that can briefly leave plants idle.
The number of people already collecting unemployment benefits, known as continuing claims, fell by 13,000 to 1.68 million. They are near the lowest level since the early 1970s.
Big picture: The not-so-secret sauce of the longest economic expansion in U.S. history is the lowest unemployment rate in almost 50 years. Millions of Americans working and spending has shielded the U.S. from the worst effects of a global economic slowdown.
Yet there are signs companies are cutting back on new hires amid worries about ongoing trade tensions and the dampening effects on U.S. exports and American manufacturers. A fresh survey shows that manufacturers posted the slowest growth in July in 10 years.
Read: The economy has become a rowboat with just one oar doing all the work
The economy is still doing pretty well, but that will only be the case so long as the labor market stays healthy.
Read: The last time inflation ran consistently above 3% was 26 years ago
Market reaction: The Dow Jones Industrial Average DJIA, -0.29% and S&P 500 SPX, +0.47% were set to open mixed in Thursday trades. Stocks are hovering close to record highs, however.
The 10-year Treasury yield TMUBMUSD10Y, -1.61% was little changed at 2.06%.
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