U.S. jobless benefit applications reached a 56-year low as the labor market remains resilient despite rising oil prices.
U.S. applications for jobless benefits fell to 187,000 in the week ending July 18, marking the lowest level in more than five decades. The Labor Department reported that the figure is significantly lower than the 215,000 applications forecast by analysts. The labor market remains healthy despite a surge in oil prices caused by a military attack on Iran. While crude oil prices rose to over $91 a barrel, Carl Weinberg, chief economist at High Frequency Trading, noted that the labor market has not yet shown significant wear from the energy supply shock. The current stability follows a period of cautious hiring. The administration announced that employers added only 57,000 jobs in June, a decline influenced by President Trump’s tariffs and federal workforce reductions. While major companies like Microsoft and Amazon have recently trimmed staff, the four-week moving average of claims remains at a historically healthy level of 207,500.