The numbers: Initial jobless claims fell by 12,000 to 216,000 in the week ended October 26, the Labor Department said Thursday. This is the third straight decline in weekly claims. Claims are now at their lowest level since May.  

Economists polled by The Wall Street Journal had estimated new claims would rise by 3,000 to 230,000. 

Last week claims fell a revised 14,000 to 228,000. That compares with the initial estimate of a drop of 15,000 to 227,000.

Key details:  The number of new claims based on actual filings — that is, before seasonal adjustments — fell to 200,132 in the latest week.

The number of people already collecting unemployment benefits in the week of Oct. 19 fell 26,000 to 1.86 million, the government said.

Big picture: After spiking to 260,000 in early October due to Hurricane Helene, claims have now returned to the low levels that indicate no strain in labor markets, economists said.

Looking ahead: “Businesses still seem to be managing labor costs by cutting hiring, rather than with layoffs. Most leading indicators of claims that we track, such as the Challenger job cut announcements, generally point to this continuing, at least for now,” said Oliver Allen, senior U.S. economist at Pantheon Macroeconomics.

Market reaction: Stocks DJIA-0.90% SPX-1.86% opened lower on Thursday. The yield on the 10-year Treasury note TMUBMUSD10Y 4.275% were flat to 4.303%.