US applications for jobless benefits fall to 227,000 last week, remain at historically healthy level

WASHINGTON (AP) — U.S. applications for unemployment benefits fell last week, remaining in the historically healthy range of the past couple years.

A now hiring and help wanted sign is posted in Morrisville, Pa., Monday, June 9, 2025. (AP Photo/Matt Rourke)

WASHINGTON (AP) — U.S. applications for unemployment benefits fell last week, remaining in the historically healthy range of the past couple years.

The Labor Department reported Thursday that jobless claims for the week ending July 5 fell by 5,000 to 227,000, fewer than the 238,000 that analysts forecast. Applications for unemployment aid are viewed as representative of layoffs.

Last week, the Labor Department reported thatU.S. employers added a surprising 147,000 jobsin June, yet another sign that the American labor market continues to show resilience despite uncertainty over President Donald Trump’s economic policies. The job gains were much bigger than expected and the unemployment rate ticked down 4.1% from 4.2% in May. Analysts had forecast that unemployment would rise to 4.3%.

Though the job market is broadly healthy by historical standards, some weakness has surfaced as employers contend with fallout from Trump’s policies, especially his aggressive tariffs, which raise prices for businesses and consumers. Most economists believe they make the economy less efficient by reducing competition. They also invite retaliatory tariffs from other countries, hurting U.S. exporters and potentially driving businesses to freeze hiring or cut staff.

The deadline on most of Trump’s stiff proposed taxes on imports were extended again until Aug. 1. Unless Trump reaches deals with other countries to lower the tariffs, economists fear they could act as a drag on the economy and trigger another bout of inflation.

Companies that have announced job cuts this year includeProcter & Gamble,Workday,Dow,CNN,Starbucks,Southwest Airlines, and Facebook parent companyMeta.

Last week, Microsoft announced that it islaying off about 9,000workers,its second mass layoffin months and its largest in more than two years.

In June, Google confirmed that it hadoffered buyoutsto another swath of its workforce in a fresh round of cost-cutting.

The Labor Department’s report also said that the four-week average of claims, which evens out some of the weekly volatility, fell by 5,750 to 235,500.

The total number of Americans collecting unemployment benefits for the week of June 28 rose by 10,000 to 1.97 million. That’s the most since November of 2021.

Matt Ott, The Associated Press

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