The number of Americans filing new applications for unemployment benefits dipped last week, signaling the U.S. labor market’s strength amid economic uncertainty and high interest rates.
Illinois registered the largest increase, totaling more than 1,300. Virginia reported the biggest drop with 1,263.
The four-week average, which removes week-to-week volatility, edged up to 231,500 from the previous week’s 230,500.
Continuing unemployment claims—a measure of individuals who have filed applications for jobless benefits and still receive them—rose to a higher-than-expected 1.903 million from a downwardly adjusted 1.867 million.
Initial jobless claims filed under programs for federal government workers increased by 157, to 595. Economic observers have been watching this metric closely to determine the potential impact of Department of Government Efficiency-related actions.
The latest data highlight the U.S. labor market’s strength during uncertainty in the broader economy. Market watchers are waiting to determine if employment figures in the coming months will show that deteriorating business and consumer confidence is bleeding into the hard data.
Many economists anticipate that possible adverse tariff-related effects will seep into the U.S. economy in the year’s second half, potentially stoking inflation and curtailing consumer demand.
While tariff scares have diminished significantly from a month ago, risks could be lurking around the corner, says Kristian Kerr, the head of macro strategy for LPL Financial.
“Greater clarity is expected later this summer, as economic data tends to lag, meaning the full impact of tariffs may not be evident until June or July at the earliest,” Kerr said in a note emailed to The Epoch Times.
