The number of Americans continuing to claim unemployment benefits has dropped to the lowest level since March 2023.

The number of initial jobless claims in the United States fell slightly to its lowest level since July, while continuing jobless claims dropped to a three-year low, indicating that the labor market remains healthy. Continuing jobless claims decreased by 11,000 to 1.7 million, marking the lowest figure since March 2023. Over the past few months, initial jobless claims have hovered near historic lows, showing that companies are reluctant to lay off employees amid robust economic activity. Meanwhile, hiring is more cautious. The government is scheduled to release the nonfarm payroll report on Friday, which is expected to show that the unemployment rate remained at 4.1% in September. The four-week moving average of initial jobless claims dropped to 200,000, a seven-week low. Without adjusting for seasonal factors, most states—including Hawaii, Georgia, and Texas—saw declines in initial jobless claims.