US jobless claims fall to lowest since April
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The news: Applications for US unemployment benefits fell for a sixth straight week, dropping by 4,000 to a seasonally adjusted 217,000 for the week ended 19 July, the lowest level since April.
The numbers: According to Labor Department data, unadjusted claims fell by 45,319 to 215,792, led by declines in New York, California, Michigan, Missouri and Ohio.
Continuing claims, which reflect the number of people receiving benefits after an initial week of aid, increased by 4,000 to 1.955 million, remaining near the highest levels since 2021.
The four-week moving average fell to 224,500, the lowest in three months.
The context: The steady drop in jobless claims suggests employers are holding on to staff despite sluggish hiring, as businesses remain cautious amid uncertainty over tariff policy. While layoffs have occurred, firms are largely scaling back hiring rather than cutting jobs outright.
However, the elevated level of continuing claims indicates that many unemployed workers are finding it hard to secure new positions, pointing to a labour market that is stable but lacking momentum.
Inflation pressures are also building, with the S&P Global Composite PMI showing businesses reported higher selling prices in July, with many attributing price increases to tariffs.
The data comes ahead of the Federal Reserve’s policy meeting next week, as officials remain divided on the strength of the labour market and the outlook for interest rates.
The source: US Department of Labor
