U.S. Job Market Remains Healthy as Weekly Unemployment Claims Rise Slightly to 197,000
The Labor Department reported Thursday that U.S. jobless aid applications rose by 9,000 to 197,000 for the week ending July 25. While the number of Americans seeking benefits increased, layoffs remain in a historically healthy range compared to the past few years. Analysts surveyed by FactSet had forecasted 207,000 new applications, meaning the actual figure was lower than expected. Despite rising oil prices caused by the U.S.-Iran war, the American job market remains stable. However, experts warn that prolonged conflict and high energy costs may eventually force companies to reduce headcounts. The Federal Reserve's preferred inflation metric, PCE, reached 3.7%, which is still above the 2% target. To combat these prices, Fed officials may raise interest rates, which could increase costs for businesses and slow hiring. Previous reports from the administration indicated that hiring slowed in 2025 due to President Trump's tariffs and federal workforce reductions. Major companies like Amazon and Walmart have already begun trimming their workforces.