WASHINGTON—The number of Americans filing new applications for unemployment benefits fell more than expected last week, indicating that layoffs remained limited and reinforcing signs that the U.S. labor market continues to show resilience despite slower hiring.
Initial claims for state unemployment benefits declined by 8,000 to a seasonally adjusted 208,000 in the week ended July 11, according to the Labor Department's weekly claims report released on Thursday. Economists surveyed ahead of the report had expected about 217,000 new claims.
The latest reading marked the lowest level in about 10 weeks and reversed a temporary rise in claims seen from late May through mid-June. The Labor Department also revised the previous week's figure upward by 1,000 to 216,000.
The four-week moving average, which smooths week-to-week volatility, fell to 214,250 from a revised 219,000. Continuing claims, a measure of the number of people receiving unemployment benefits after an initial week of assistance and viewed as a gauge of hiring conditions, declined by 16,000 to a seasonally adjusted 1.805 million in the week ended July 4.
The figures suggest employers are continuing to retain workers even as broader labor demand has moderated. Economists have described current conditions as a "slow hire, slow fire" labor market, with businesses adding workers cautiously while avoiding widespread layoffs.
Recent economic data have presented a mixed picture of the labor market. The June employment report showed job growth slowed sharply, while the unemployment rate edged down to 4.2%, reflecting in part a decline in labor force participation. Despite weaker payroll gains, unemployment claims have remained within a range historically associated with a stable labor market.
Additional indicators released this week also pointed to persistent labor shortages in some industries. The Federal Reserve's Beige Book said employment increased on balance across the country in early July, although hiring varied by region, with employers continuing to report difficulty finding skilled workers, particularly technicians and tradespeople. Separately, the National Federation of Independent Business reported an increase in the share of small businesses saying they had few or no qualified applicants for open positions.
Financial markets continue to monitor labor market data closely as investors assess the outlook for economic growth and monetary policy. For now, the latest claims figures indicate layoffs remain historically low, with no official data pointing to a significant deterioration in labor market conditions.
