US initial jobless claims fell to a level of 196,000 in the employment survey week ended Sept. 12 from an unrevised 206,000 level in the previous week, compared with expectations for an increase to 207,000 in survey of analysts compiled by Bloomberg.
Initial claims were at a level of 207,000 in the employment survey week ended Aug. 15.
The four-week moving average fell by 2,750 to 203,250 after declining by 1,500 to a level of 206,000 in the previous week.
Insured jobless claims declined by 39,000 to 1,730,000 in the week ended Sept. 5.
The weekly initial jobless claims data released by the US Labor Department measures filings for unemployment insurance benefits. Initial filings are reported through the previous Saturday, while those already on benefits are measured with a one-week lag.
A decrease in claims suggests a stronger labor market, a positive for the US economy and stocks, but a negative for bonds as it suggests wage growth that could lead to inflation.