Jobless Claims Fall Again to 215,000. Strong Labor Market Fuels U.S. Economy

Dow Jones05-23

Story developing. Stay tuned for updates here.

The numbers: The number of Americans who applied for unemployment benefits last week fell again to 215,000, indicating once again that layoffs are low and that the economy is being buoyed by a strong labor market.

Initial jobless claims have hovered between 194,000 and 232,000 this year, a remarkably low level last achieved consistently in the 1960s.

Economists polled by the Wall Street Journal had forecast new claims to total 220,000 in the seven days ending May 18, based on seasonally adjusted figures.

Big picture: The low level of layoffs reflects a tight labor market in which good help is hard to find.

Most businesses are wary of cutting jobs given the steady expansion in the U.S. economy and the potential for growth-stimulating reductions in interest rates later this year by the Federal Reserve.

The strong labor market has been a key bulwark against the threat of recession.

Market reaction: The Dow Jones Industrial Average DJIA and S&P 500 SPX were set to open higher on Thursday after strong Nvidia $(NVDA)$ earnings.

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