A tightening labor market could make it harder for the Federal Reserve to justify cutting rates early this year. | Economy
Jobless claims fell by 16,000 to 187,000 from a revised 203,000 in the prior week, the Department of Labor said Thursday.
Economists had forecast 208,000 claims. The downward surprise is an indication that analysts are still underestimating the strength of the labor market.
Claims are a proxy for layoffs. The low level of claims indicates that few employers are shedding workers as the new year begins even though many economists say growth will slow significantly this year.
