The number of Americans filing for unemployment benefits fell last week to the lowest level in three months, a sign that the US labor market remains sturdy despite fears over the impact of widespread US tariffs.The Labor Department reported Thursday (July 17) that jobless claims for the week ending July 12 fell by 7,000 to 221,000, the fifth straight weekly decline and the fewest since mid-April. Last week’s number was also lower than the 232,000 that analysts forecast. Applications for unemployment aid are viewed as representative of layoffs.
Earlier this month, the Labor Department reported that US employers added a surprising 147,000 jobs in June, adding to evidence that the American labor market continues to show resilience despite uncertainty over President Donald Trump’s economic policies. The job gains were much bigger than expected and the unemployment rate ticked down 4.1% from 4.2% in May. Analysts were expecting the unemployment to rise to 4.3%.
Though the job market is broadly healthy by historical standards, some weakness has surfaced as employers contend with fallout from Trump’s policies, especially his aggressive tariffs, which raise prices for businesses and consumers. Most economists believe the import duties make the economy less efficient by reducing competition. They also invite retaliatory tariffs from other countries, hurting US exporters and potentially driving businesses to freeze hiring or cut staff.
The deadline on most of Trump’s stiff proposed taxes on imports were extended again until Aug. 1. Unless Trump reaches deals with other countries to lower the tariffs, economists fear they could act as a drag on the economy and trigger another bout of inflation.Companies that have announced job cuts this year include Procter & Gamble, Workday, Dow, CNN, Starbucks, Southwest Airlines, Microsoft, Google and Facebook parent company Meta.
Earlier this month, the Labor Department reported that US employers added a surprising 147,000 jobs in June, adding to evidence that the American labor market continues to show resilience despite uncertainty over President Donald Trump’s economic policies. The job gains were much bigger than expected and the unemployment rate ticked down 4.1% from 4.2% in May. Analysts were expecting the unemployment to rise to 4.3%.
Though the job market is broadly healthy by historical standards, some weakness has surfaced as employers contend with fallout from Trump’s policies, especially his aggressive tariffs, which raise prices for businesses and consumers. Most economists believe the import duties make the economy less efficient by reducing competition. They also invite retaliatory tariffs from other countries, hurting US exporters and potentially driving businesses to freeze hiring or cut staff.
The deadline on most of Trump’s stiff proposed taxes on imports were extended again until Aug. 1. Unless Trump reaches deals with other countries to lower the tariffs, economists fear they could act as a drag on the economy and trigger another bout of inflation.Companies that have announced job cuts this year include Procter & Gamble, Workday, Dow, CNN, Starbucks, Southwest Airlines, Microsoft, Google and Facebook parent company Meta.
The Labor Department’s report Thursday said that the four-week average of claims, which smooths out some of the weekly ups and downs, fell by 6,250 to 229,500.
The total number of Americans collecting unemployment benefits for the week of July 5 remained stable, ticking up by just 2,000 to 1.96 million.
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