Fewer Americans applied for unemployment benefits last week as layoffs in the U.S. remain low despite uncertainty about how tariffs will affect the economy.
The U.S. Labor Department reported Thursday that jobless claims for the week ending June 28 fell by 4,000 to 233,000, below the 241,000 forecast by analysts. Applications for unemployment aid are considered a proxy for layoffs.
In a separate report Thursday, the department said U.S. employers added 147,000 jobs in June — a sign the labour market continues to show surprising resilience despite uncertainty over President Donald Trump’s economic policies. The job gains were much stronger than expected and the unemployment rate ticked down to 4.1% from 4.2% in May. Analysts had predicted a rise to 4.3%.
Though the job market remains broadly healthy by historical standards, some weakness has surfaced as employers contend with fallout from Trump’s policies, particularly 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 prompting businesses to freeze hiring or cut staff.
Many of Trump’s stiff proposed taxes on imports are currently on pause but are scheduled to take effect next week. Unless Trump reaches deals with other countries to lower the tariffs, economists fear they could 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 Meta, Facebook’s parent company.
On Wednesday, Microsoft announced 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 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 the four-week average of claims, which smooths out weekly volatility, fell by 3,750 to 241,500.
The total number of Americans collecting unemployment benefits for the week of June 21 held steady at 1.97 million.