Key facts
- Initial jobless claims dropped by 22,000 to 187,000 for the week ended July 18.
- This is the lowest level for initial jobless claims since 1969.
- Economists had forecast 212,000 applications.
- The number of people on jobless benefit rolls fell to 1.796 million in the week ended July 11.
- The U.S. unemployment rate dipped to a one-year low of 4.2% in June.
Initial applications for U.S. unemployment benefits fell sharply last week to the lowest level since 1969, signaling continued stability in the labor market and muted layoffs. The Labor Department reported that initial claims dropped by 22,000 to a seasonally adjusted 187,000 for the week ended July 18, below the 212,000 new claims forecast by economists polled by Reuters.
The number of Americans on jobless benefit rolls for more than a week, a proxy for hiring, decreased to 1.796 million in the week ended July 11. The U.S. unemployment rate unexpectedly dipped in June to a one-year low of 4.2%, partly due to a decline in the workforce. The labor market's dynamic of restrained worker supply, slow job creation, and limited layoffs has kept the jobless rate historically low, prompting Federal Reserve policymakers to prioritize inflation containment over labor market resilience.
The Federal Reserve is expected to leave interest rates unchanged at its upcoming meeting, but market futures indicate at least one quarter-percentage-point rate hike is anticipated before the end of the year.