Jobless Claims Rise Amid Ongoing Labor Market Uncertainty
The number of Americans applying for unemployment benefits rose last week to 199,000, but layoffs remain in a historically healthy range. According to the Labor Department's report on Thursday, jobless aid filings increased by 1,000 from the previous week, and the four-week moving average fell by 4,500 to 198,750. This is a relatively stable figure, as weekly jobless claims have been mostly between 200,000 and 250,000 since the US economy emerged from the pandemic recession.
The report also showed that hiring slowed down two years ago and tapered further in 2025 due to various factors, including President Donald Trump's tariffs, his purge of the federal workforce, and the lingering effects of high interest rates meant to control inflation. Among the companies that have trimmed their workforce recently are Verizon, UPS, Amazon, Disney, Starbucks, Walmart, and Microsoft.
The Labor Department's report comes as the Federal Reserve is closely watching inflation levels. The Fed's preferred inflation metric, PCE, came in at 3.7% for June, which is still above the central bank's 2% target. If inflation remains elevated, Fed officials say they are ready to raise interest rates to combat higher prices.