New applications for US unemployment benefits fell by 1,000 to a seasonally adjusted 197,000 in the week ending September 19. It is a low reading and suggests employers are still reluctant to lay people off. But one week's claims do not tell us whether companies are hiring briskly, or whether the labor market will stay this firm. The Federal Reserve had raised its target rate to 3.75%–4% the previous week, citing solid activity and inflation that remained elevated. A resilient labor market gives it room to wait for clearer evidence on prices.
What it means: Are low jobless claims the same as strong hiring? No. Claims measure new filings for unemployment benefits; job creation is measured separately.