Jobless claims in the U.S. fell for the fifth straight week, showing that the job market remains strong. For the week ending July 12, initial jobless claims dropped by 7,000 to 221,000. This was better than economists’ forecast of 233,000. The number of people continuing to receive unemployment benefits stayed steady at 1.96 million during the holiday-shortened week.
Jobless claims have returned to pre-pandemic levels after rising in May and June. However, the steady number of continuing claims suggests that people are having a harder time finding new jobs, as hiring has slowed down. The four-week average of new claims also fell to 229,500, the lowest since early May.
Unadjusted initial claims rose by 19,539 to 260,900. The biggest increases were in New York, Nevada, and Texas, while Michigan, New Jersey, and Tennessee saw declines.
Despite the strong labor market data, some large companies like Recruit Holdings and Intel have recently announced job cuts. This adds some uncertainty to the overall job outlook.
Meanwhile, President Donald Trump once again urged the Federal Reserve to cut interest rates in a post on Truth Social.
