The U.S. labor market continues to exhibit signs of strength, with initial jobless claims falling sharply for the week ending Oct. 19. The number of individuals filing for unemployment benefits dropped more than expected, signaling a robust job market as Americans approach a presidential election in less than two weeks.

Jobless Claims Slow

Initial jobless claims came in at 227,000 last week, a decline of 15,000 from the previous week. This marked the largest week-over-week drop since August 2024 and came in below economist forecasts of 242,000. The sharp decline is a sign that fewer Americans are being laid off, further reflecting...