• Initial jobless claims fell to 216,000 for the week ending November 22, well below the 225,000 consensus forecast.
  • Continued claims dropped to 1.960 million, while the insured unemployment rate held steady at 1.3%.
  • The stronger-than-expected data suggests underlying labor market strength despite recent softening in job growth.

U.S. jobless claims fell more than anticipated last week, dropping to 216,000 and underscoring the labor market's persistent resilience even as other economic indicators show signs of moderation. The figure came in significantly below the 225,000 forecast by economists and marked a decline from the previous week's revised 222,000.

The four-week moving average, which smooths out weekly volatility, edged down to 223,750, while continued claims—representing people already receiving benefits—declined to 1.960 million. The insured unemployment rate remained unchanged at 1.3%, according to Department of Labor data released Thursday morning.

"This is exactly the kind of data the Fed wants to see—a labor market that's cooling but not collapsing," said a fixed-income strategist at a major investment bank who requested anonymity because they weren't authorized to speak publicly. "The claims data continue to run well below historical averages, suggesting businesses are holding onto workers despite economic uncertainty."

The labor market has shown remarkable durability throughout 2025, though recent months have revealed some cracks in what had been an exceptionally strong foundation. Job growth has slowed considerably, with payrolls averaging just 62,000 jobs per month in the third quarter compared to 133,000 during the same period last year. The unemployment rate ticked up to 4.4% in September from 4.3% the previous month.

Still, the latest claims data suggest that while hiring may have moderated, widespread layoffs remain off the table for now. The numbers are particularly notable given the Department of Labor's recent operational challenges, including disruptions from October's government shutdown that forced batch updates and created some volatility in the weekly figures.

The Federal Reserve has been closely monitoring labor market conditions as it navigates its rate-cutting cycle, having already reduced the target range to 3.75%-4.00% following cuts in September and October. Officials have indicated they're watching for signs of either excessive strength that could reignite inflation or weakness that might warrant more aggressive policy support.

Treasury yields edged higher following the release as traders pared back bets on additional near-term rate cuts. The stronger claims data, combined with recent inflation readings, have led some market participants to question how quickly the Fed might continue its easing cycle into 2026.

Correction: An earlier version of this article misstated the previous week's jobless claims figure. It was 222,000, not 220,000.