Applications for U.S. unemployment benefits fell by 10,000 to 196,000 in the week ended September 12, according to Labor Department data released Thursday. The reading came in well below economist forecasts that had centered around 207,000 to 208,000. The four-week moving average declined to 203,250 while continuing claims dropped to 1.730 million. Together the figures point to a stable and resilient labor market that remains one of the strongest in recent years.

The unexpectedly low level of new claims reduces near-term pressure on the Federal Reserve to deliver aggressive interest-rate cuts. With hiring conditions holding firm, policymakers now have additional evidence that the broader economy continues to absorb workers without significant deterioration. The data leave open questions about whether the strength will persist through the rest of the year and how the central bank will weigh the numbers against other inflation and growth indicators. For now the labor market is sending a clear signal of underlying firmness.