Washington: US applications for unemployment benefits fell last week, remaining in the historically healthy range of the past couple years.
The Labour Department reported Thursday that jobless claims for the week ending July 5 fell by 5,000 to 2,27,000, fewer than the 2,38,000 that analysts forecast. Applications for unemployment aid are viewed as representative of layoffs.
Last week, the Labour Department reported that US employers added a surprising 1,47,000 jobs in June, yet another sign that the American labour 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 per cent from 4.2 per cent in May.
Analysts had forecast that unemployment would rise to 4.3 per cent.
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 they 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 August 1.