Applications for U.S. unemployment benefits plunged to the lowest level in decades, a sign that job-cut announcements have not yet meaningfully translated into layoffs.

Initial claims fell by 26,000 to 189,000 in the week ended April 25. according to Labor Department data released Thursday. The median forecast in a Bloomberg survey of economists called for 212,000 applications.

Continuing claims, a proxy for the number of people receiving benefits, dropped to 1.79 million in the previous week, the lowest in two years.

Filings have remained subdued despite high-profile companies such as Meta Platforms Inc. and Nike Inc. announcing job cuts, signaling the labor market continues to be in a low-firing environment. The Federal Reserve left interest rates unchanged Wednesday, and Fed Chair Jerome Powell cited a labor market showing “more and more signs of stability” as a reason why the central bank didn’t have to rush toward further rate cuts.

Before adjusting for seasonal factors, initial claims also fell last week. New York led the declines with nearly 11,000 fewer filings, erasing a large increase over the previous two weeks. California and Connecticut also registered sizable declines.

A separate report Thursday showed GDP advanced 2% in the first quarter, fueled by solid business and consumer demand.

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—With assistance from Jarrell Dillard.

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