US filings for unemployment aid fall to 187,000 last week, fewest since 1969 - AP News

What the report says

The Associated Press reported that U.S. initial applications for unemployment aid fell sharply in the week ending July 18, dropping by 22,000 to 187,000, according to Labor Department data released Thursday. AP said that was the lowest weekly total since the week ending Sept. 6, 1969, and far below the 215,000 claims expected by analysts surveyed by FactSet.

Jobless claims are widely watched because they provide a near real-time signal of layoffs and labor-market stress. The latest figure suggests employers are still holding on to workers even as economic uncertainty persists. The four-week average, which smooths weekly swings, declined by 7,250 to 207,500, while continuing claims for the prior week ending July 11 slipped by 2,000 to just under 1.8 million.

AP placed the data against a mixed labor-market backdrop. The government’s June jobs report showed employers added 57,000 jobs, a slower pace than the previous month, while the unemployment rate edged down to 4.2% from 4.3%, partly because some people stopped looking for work. AP also noted that weekly claims have largely stayed between 200,000 and 250,000 since the economy recovered from the pandemic recession.

The report highlighted risks from higher energy prices after the U.S. military attack on Iran, with U.S. crude rising to more than $91 a barrel and average gasoline prices above $4 a gallon. AP said analysts are watching whether a prolonged conflict or elevated fuel costs could eventually pressure businesses to cut payrolls.