US joblessness data: Applications for benefits remain in historically healthy range; fell to 227,000 last week

Unemployment benefit claims in the United States dipped last week,falling to a historically healthy range over the past couple years. These figures offer another sign of strength in the country’s labour market even as major companies announce job cuts and concerns grow over the economic impact of tariffs.According to data released by the US labour department on Thursday, initial applications for unemployment aid fell by 5,000 to 227,000 in the week ending July 5, below the 238,000 predicted by analysts, AP reported.Jobless claims are closely watched as an indicator of layoffs.This follows last week’s report showing that US employers added a stronger-than-expected 147,000 jobs in June. The national unemployment rate edged down to 4.1%, improving slightly from May’s 4.2% figure. Many analysts had anticipated a rise to 4.3%, but the labour market once again showed unexpected resilience, despite growing uncertainty over US president Donald Trump’s economic policies.Still, signs of strain are emerging. The ongoing uncertainty over Trump’s policies, particularly his use of aggressive tariffs, is causing unease among businesses. Most economists argue that such tariffs reduce competition and make the economy less efficient. They also risk triggering retaliatory measures from other countries, which could hurt US exporters and prompt businesses to halt hiring or reduce their workforce.Unless fresh trade agreements are reached, the bulk of Trump’s proposed tariffs, now extended until 1 August, could weigh further on economic momentum and rekindle inflationary pressures, economists warn.A number of major firms have already announced job reductions this year. Microsoft revealed last week it will cut around 9,000 jobs, marking its second large-scale layoff in recent months and the biggest in over two years. Google, meanwhile, confirmed fresh buyouts in June as part of its continued cost-cutting efforts.Other companies trimming their workforce include Meta (Facebook’s parent company), Procter & Gamble, Starbucks, CNN, Workday, Dow, and Southwest Airlines.While short-term volatility in claims is common, the four-week moving average, considered a more reliable measure, also fell by 5,750 to 235,500.However, the number of Americans continuing to receive unemployment benefits rose by 10,000 to 1.97 million for the week ending June 28, the highest figure since November 2021.