Jobless Claims Hit Level Last Seen in 1969

US applications for jobless benefits tumbled to the lowest level in more than five decades last week as layoffs remain historically low despite global economic uncertainty. The number of Americans applying for unemployment benefits in the week ending July 18 declined by 22,000 to 187,000, the Labor Department reported Thursday. That's the fewest number of weekly applications since the week ending Sept. 6, 1969, according to Labor Department data. It's also well below the 215,000 new applications forecast by analysts surveyed by the data firm FactSet, reports the AP. Weekly filings for unemployment benefits are considered a proxy for layoffs and are close to a real-time indicator of the health of the US job market.

In its expansive June jobs report earlier this month, the government reported that employers pulled back on hiring, adding only 57,000 jobs. That's less than half the previous month's total and a sign that companies remain cautious about adding to their head counts. The unemployment rate dropped to 4.2% from 4.3% in May, though that decline was mostly because many out-of-work people gave up looking for jobs and were no longer counted as unemployed. June's tepid hiring comes after a relative surge in job gains the previous three months, countering concerns that the war in Iran could trip up an already wobbly labor market.

Weekly jobless aid applications have stabilized in a range mostly between 200,000 and 250,000 since the US economy emerged from the pandemic recession. But hiring began slowing about two years ago and tapered off further in 2025 due to President Trump's tariffs, his purge of the federal workforce, and the lingering effects of high interest rates meant to control inflation. Among the companies that have trimmed their workforce recently are Verizon, UPS, Amazon, Disney, Starbucks, and Walmart. Earlier this month, Microsoft said it was cutting 4,800 jobs, about 2.1% of its global workforce, including a large number of workers at its Xbox business.

Thursday's layoffs data showed that the four-week moving average of weekly jobless claims, which adjusts for volatility, fell by 7,250 to 207,500. The total number of Americans filing for unemployment benefits for the week ending July 11 was down by 2,000 to just under 1.8 million, also a historically healthy figure.