United States Initial Jobless Claims

Initial jobless claims in the US fell by 7,000 from the previous week to 221,000 in the second period of July, well under market expectations that they would rise by 8,000 to 235,000. It was the lowest number of new claims in one week since April. In the meantime, outstanding claims were broadly unchanged at 1,956,000 on the previous week, below market expectations of 1,970,000 to remain below the 2021 highs touched in June. The results continued to reflect a historically strong labor market, aligned with statements from the Federal Reserve, while consolidating the view that the hiring pace has slowed since the start of the year. Initial claims filed by federal government employees, which have been under scrutiny following recent dismissals by the Department of Government Efficiency (DOGE), jumped by 158 to 596, the highest in seven weeks.