U.S. Jobless Claims Hit Lowest Level in Over Fifty Years

WASHINGTON (AP) — The number of Americans applying for unemployment benefits reached a historic low last week. The Labor Department reported a decline of 22,000 applications, bringing the total to 187,000 for the week ending July 18. This figure represents the least amount of weekly applications since September 1969.

Analysts had predicted 215,000 new applications, according to a survey by FactSet. Weekly filings serve as an indicator for layoffs and provide real-time insight into the U.S. job market’s health. Despite soaring oil prices due to the U.S. military action against Iran, layoffs remain historically low.

Carl Weinberg, chief economist at High Frequency Trading, commented on the labor market’s resilience despite energy price spikes. Oil prices surged nearly 5% early Thursday, exceeding $91 per barrel, marking a six-week high. Gas prices averaged above $4 per gallon nationwide, impacting consumer budgets and fuel-dependent businesses.

The economic crisis caused by the energy supply shock is not over yet.

In June, employers added only 57,000 jobs, which is less than half compared to the prior month’s total. The unemployment rate decreased slightly to 4.2%, attributed to people giving up on job searching and not being counted as unemployed.

The U.S. job market has shown resilience despite concerns about the war in Iran. The pandemic recession had stabilized jobless aid applications between 200,000 and 250,000. Hiring started slowing two years ago due to trade tariffs, federal workforce cuts, and high interest rates aimed at controlling inflation.

Major companies such as Verizon, UPS, Amazon, Disney, Starbucks, and Walmart have reduced their workforces. Recently, Microsoft announced cutting 4,800 jobs, equating to 2.1% of its global staff. This included layoffs in its Xbox division.

The four-week moving average of jobless claims fell by 7,250 to 207,500, highlighting an overall healthy labor market. The total for the week ending July 11 was under 1.8 million, a historically strong figure.