The number of Americans filing new applications for unemployment benefits increased less than expected in the week ended May 2, according to data released Thursday by the Labor Department.
Initial jobless claims rose by 10,000 to 200,000 from the previous week’s revised figure of 190,000.
Economists had forecast claims would increase to 205,000 after the prior week’s originally reported level of 189,000.
The four-week moving average, which helps smooth out weekly volatility, declined to 203,250, down 4,500 from the previous week’s revised average of 207,750.
Separate preliminary data from the Labor Department also showed U.S. labor productivity grew at a slower pace than expected during the first quarter of 2026.
Productivity increased 0.8% during the quarter after rising by a downwardly revised 1.6% in the fourth quarter of 2025.
Economists had expected productivity growth of 1.7%, compared with the previously reported 1.8% increase in the prior quarter.
Meanwhile, unit labor costs climbed 2.3% in the first quarter after an upwardly revised surge of 4.6% in the final quarter of 2025.
Analysts had projected labor costs would rise 2.0% following the previously reported 4.4% jump in the prior quarter.