WASHINGTON — The number of Americans filing new applications for unemployment benefits fell last week to the lowest level in 10 weeks, indicating that the U.S. labor market remained resilient despite slower hiring and broader signs of moderating economic growth.
Initial claims for state unemployment benefits declined by 8,000 to a seasonally adjusted 208,000 in the week ended July 11, according to data released by the Labor Department. The reading came in below economists' expectations of about 217,000 claims and marked a reversal after filings had increased during late May and mid-June.
Weekly jobless claims are widely viewed as a timely indicator of layoffs. The latest figures suggest employers continue to retain workers even as businesses face higher borrowing costs, persistent inflation pressures and uncertainty surrounding trade and global economic conditions.
The Labor Department also reported that continuing claims, a measure of the number of people receiving unemployment benefits after an initial week of assistance, fell by 16,000 to a seasonally adjusted 1.805 million in the week ended July 4. Economists generally regard lower continuing claims as a sign that displaced workers are continuing to find new employment at a steady pace.
Recent labor market indicators have pointed to what many economists describe as a "slow hire, slow fire" environment, with employers reducing the pace of recruitment while avoiding widespread layoffs. The Federal Reserve's latest Beige Book reported that employment increased overall in early July, with five of the central bank's districts reporting job gains while seven saw little or no change. It also noted ongoing shortages of skilled workers, particularly technicians and tradespeople.
Separately, the National Federation of Independent Business said its June survey showed a higher share of small-business owners reporting difficulty finding qualified applicants for open positions, underscoring continued labor shortages in parts of the economy.
The claims data follow a June employment report showing payroll growth slowed while the unemployment rate edged down to 4.2%, reflecting continued labor market resilience despite softer hiring activity. Analysts said the combination of historically low layoffs and moderating job creation remains consistent with a gradual cooling in labor demand rather than a sharp deterioration.
The Labor Department is scheduled to release the next weekly unemployment claims report on July 23, providing another update on the health of the U.S. labor market.
