US initial jobless claims fell last week

Initial applications for unemployment benefits in the United States declined in the week ended July 5, falling for the fourth week to the lowest level in two months.

According to US Labor Department data, new fillings dropped 5,000 to 227,000. The figure tends to fluctuate during summer breaks and federal holidays due to shifts in temporary and seasonal employment. The decline in initial applications suggests that employers are hesitant to lay off workers, Bloomberg says. 

Before adjusting for seasonal factors, new jobless claims climbed 10,000 last week. The rise was led by Michigan, Ohio, and Tennessee due to retooling at auto plants. That could distort the data, the news agency notes. 

Meanwhile, the number of Americans continuing to receive unemployment benefits surged to 1.97 million, the highest since late 2021. The spike indicates the difficulty of finding a job, Bloomberg adds.

The four-week average of jobless claims fell to 235,500, the lowest since late May.