Fewer Americans applied for unemployment benefits last week as layoffs in the U.S. remain low despite uncertainty about how tariffs will impact the economy.
The Labor Department reported Thursday that jobless claims for the week ending June 28 fell by 4,000 to 233,000, less than the 241,000 that analysts forecast. Applications for unemployment aid are considered a proxy for layoffs.
In a separate report Thursday, the Labor Department reported that U.S. employers added 147,000 jobs in June, a sign that the American labor market continues to show surprising 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.
Tariffs raise prices for businesses and consumers and 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.
Many of Trump’s stiff proposed taxes on imports are currently on pause, but they’re scheduled to kick into effect next week. Unless Trump reaches deals with other countries to lower the tariffs, economists fear they could act as a drag on the economy and ignite another bout of inflation.
Companies that have announced job cuts this year include Procter & Gamble, Workday, Dow, CNN, Starbucks, Southwest Airlines, and Facebook parent company Meta.
On Wednesday, Microsoft announced that it is laying off about 9,000 workers, its second mass layoff in months and its largest in more than two years.
Earlier this month, Google confirmed that it had offered buyouts to another swath of its workforce in a fresh round of cost-cutting ahead of a court decision that could order a breakup of its internet empire.
The Labor Department’s unemployment benefits report showed that the four-week average of claims, which evens out some of the weekly volatility, fell by 3,750 to 241,500.
The total number of Americans collecting unemployment benefits the week of June 21 held steady at 1.97 million.
