Applications for unemployment benefits in the U.S. fell last week, continuing to reflect a stable and historically strong labor market.
According to the Labor Department, jobless claims for the week ending July 5 declined by 5,000 to 227,000—below analysts’ expectations of 238,000. These claims are often seen as an early indicator of layoffs.
This comes on the heels of a strong June jobs report showing that U.S. employers added 147,000 jobs, well above predictions. The national unemployment rate also dipped to 4.1%, down from 4.2% in May, defying forecasts that it would rise to 4.3%.
Despite these positive numbers, signs of strain are emerging as companies navigate the effects of economic policies from President Donald Trump—particularly his tariff strategies. The tariffs have increased costs for both businesses and consumers, while also prompting retaliatory measures from other countries. Many economists argue that these policies reduce efficiency, hurt exporters, and may cause companies to delay hiring or reduce staff.
Tariffs originally scheduled to take effect earlier this year have been postponed again until August 1. Without agreements to ease trade tensions, experts warn that continued tariffs could slow economic growth and potentially trigger another wave of inflation.
Several major U.S. companies have already announced layoffs in 2024, including Procter & Gamble, Workday, Dow, CNN, Starbucks, Southwest Airlines, and Meta, Facebook’s parent company.
Microsoft recently disclosed it would cut around 9,000 jobs—its second round of mass layoffs this year and the largest in more than two years. Google also confirmed in June that it had offered buyouts to another segment of its workforce as part of broader cost-cutting efforts.
The report also noted that the four-week moving average of unemployment claims—a metric used to smooth out week-to-week fluctuations—fell by 5,750 to 235,500.
Meanwhile, the total number of Americans receiving unemployment benefits for the week ending June 28 rose by 10,000 to 1.97 million, the highest level since November 2021.
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Jobless Claims Drop to 233,000 as Layoffs Stay Low in the U.S.
U.S. Jobless Claims Stay Steady as Layoffs Remain Low Despite Ongoing Tariff Concerns
