US jobless claims -14,000 to 218,000

New applications for U.S. unemployment benefits fell last week, the Labor Department reported Thursday, offering a measure of reassurance amid rising concerns about the labor market.

For the week ended Sept. 20, initial jobless claims declined to 218,000, down from 232,000 the prior week. Economists surveyed by The Wall Street Journal had expected a higher figure of 235,000.

Continuing claims — which track the total number of people receiving unemployment benefits — stood at 1.93 million for the week ended Sept. 13, a slight decrease from the previous week. This data series lags initial claims by one week.

While job creation has slowed markedly since the beginning of the year, the unemployment rate has edged up only modestly. Fed Chair Jerome Powell has described the dynamic as “a curious kind of balance.” Economists link the softer pace of hiring both to waning demand for workers and to a smaller supply of available labor, a trend reinforced by the administration’s tighter immigration policies.