US applications for jobless benefits inch up for the first time in 7
weeks, but layoffs remain low
[August 01, 2025] By
MATT OTT
WASHINGTON (AP) — The number of Americans filing for jobless benefits
inched up modestly last week as business continue to retain staff
despite economic uncertainty around U.S. trade policy.
The Labor Department reported Thursday that jobless claims for the week
ending July 26 ticked up by 1,000 to 218,000, less than the 225,000 new
applications analysts forecast.
It was the first time in seven weeks that benefit applications rose,
although layoffs remain at historically low levels.
Weekly applications for jobless benefits are seen as representative of
U.S. layoffs and have mostly settled in a historically healthy range
between 200,000 and 250,000 since COVID-19 throttled the economy in the
spring of 2020, wiping out millions of jobs.
Earlier in July, the Labor Department reported that U.S. employers added
a surprisingly strong 147,000 jobs in June, adding to evidence that the
American labor market continues to show resilience despite uncertainty
over President Donald Trump’s economic policies. The job gains were much
more than expected and the unemployment rate ticked down 4.1% from 4.2%
in May.
The government issues its July jobs report on Friday.
Though the top line numbers reflect a broadly healthy labor market by
historical standards, some weakness has surfaced as employers contend
with fallout from Trump’s policies, especially his aggressive tariffs,
which raise prices for businesses and consumers. If consumers continue
to pull back on spending, a decline in demand could push businesses to
freeze hiring or cut staff.
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 This week, government data showed
that employers posted 7.4 million job vacancies in June, down from
7.7 million in May. The number of people quitting their jobs — a
sign of confidence in their prospects elsewhere — fell in June to
the lowest level since December. Hiring also fell from May.
The deadline on most of Trump’s stiff proposed taxes on imports were
extended again until Friday, though some deals have been made and
other deadlines to negotiate have been extended. Unless Trump
reaches deals with countries to lower the tariffs, economists fear
they could act as a drag on the economy and spark another rise in
inflation.
Companies that have announced job cuts this year include Procter &
Gamble, Dow, CNN, Starbucks, Southwest Airlines, Microsoft, Google
and Facebook parent company Meta. Most recently, Intel and The Walt
Disney Co. announced staff reductions.
The Labor Department's report Thursday also said that the four-week
average of claims, which evens out some of the week-to-week
fluctuations, fell by 3,500 to 221,000.
The total number of Americans collecting unemployment benefits for
the previous week of July 19 was unchanged at 1.95 million.
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