The number of Americans applying for unemployment benefits dropped last week to its lowest level in three months, signaling that the U.S. job market remains strong despite concerns about the effects of widespread tariffs.
According to the Labor Department’s Thursday report, initial claims for unemployment benefits for the week ending July 12 decreased by 7,000 to 221,000. This marked the fifth consecutive weekly decline and the lowest figure since mid-April. The number also came in below economists’ expectations, which had forecast 232,000 claims. These applications are often seen as a key indicator of layoffs.
Earlier this month, the Labor Department revealed that employers added a surprisingly robust 147,000 jobs in June, reinforcing signs of resilience in the labor market amid uncertainty over President Donald Trump’s economic policies. The unemployment rate also edged down to 4.1% from 4.2% in May, contrary to analyst predictions of a rise to 4.3%.
While the job market is generally healthy by historical standards, some strains have appeared as companies deal with the consequences of Trump’s tariff policies. These import taxes increase costs for businesses and consumers, reducing economic efficiency by limiting competition. They also risk retaliatory tariffs from other nations, which can hurt U.S. exporters and lead some businesses to pause hiring or cut jobs.
Most of Trump’s proposed import tariffs have had their implementation deadlines extended to August 1. Without negotiated agreements to reduce these tariffs, economists worry they could weigh on economic growth and stoke further inflation.
Several major companies have announced layoffs this year, including Procter & Gamble, Workday, Dow, CNN, Starbucks, Southwest Airlines, Microsoft, Google, and Meta, Facebook’s parent company.
The Labor Department also reported that the four-week moving average of unemployment claims—a measure that smooths out weekly fluctuations—fell by 6,250 to 229,500.
Meanwhile, the total number of Americans receiving unemployment benefits for the week of July 5 remained largely unchanged, rising slightly by 2,000 to 1.96 million.
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Jobless Claims in U.S. Dip to 227,000, Staying Within Healthy Range
Jobless Claims Drop to 233,000 as Layoffs Stay Low in the U.S.
