The number of Americans filing for state unemployment benefits slipped slightly last week. However, claims remained close to their recent range, suggesting that the U.S. labor market is still holding steady.
Initial jobless claims fell to 215,000 for the week ending July 4, according to Labor Department data released Thursday. That was below the upwardly revised 217,000 reported in the previous week.
Economists had expected jobless claims to rise to 218,000.
Four-Week Claims Average Also Declines
The four-week moving average, which helps smooth out weekly volatility, also moved lower.
Adjusted claims fell to 218,750 from 222,500 in the previous week. This suggests that the broader trend in unemployment filings remains stable.
Continuing Claims Move Higher
Continuing claims rose by 8,000 to a seasonally adjusted 1.814 million for the week ending June 27.
Continuing claims track the number of people still receiving unemployment benefits after their first week of aid. This figure is often viewed as a signal of hiring conditions.
Reuters reported that the elevated number partly reflects seasonal adjustments linked to school holidays.
Fed Watches Labor Market and Inflation Risks
The data comes as Federal Reserve policymakers continue to balance two key goals: supporting full employment and controlling inflation.
In June, the Fed kept interest rates unchanged in a range of 3.5% to 3.75%. However, updated projections showed that some officials still expected possible rate increases this year.
Higher interest rates can help reduce inflation. At the same time, they may also slow hiring and put pressure on the labor market.
Policymakers Expect Stable Employment Conditions
Minutes from the Fed’s latest meeting, released Wednesday, showed that officials were concerned about energy-driven inflation linked to the Iran war.
Still, policymakers expected labor market conditions to remain stable in the near term. They also projected that the unemployment rate would stay close to current levels.
For now, the latest jobless claims report points to a labor market that is cooling only gradually, rather than weakening sharply.
