The latest data from the US Labor Department shows that first-time applications for unemployment benefits decreased by 5,000 to 227,000 in the week ending July 5. This figure remains within a historically healthy range, well below the level often associated with a weakening job market.

Economists had expected around 235,000 claims, making the lower-than-forecast number a positive surprise. The drop followed a seasonal pattern typical after the school year ends, and was supported by widespread declines 28 out of 53 states reported fewer claims.

While layoffs have been announced by major companies, including Microsoft and Intel, the steady jobless claims indicate that employers are not letting go of staff en masse. However, new data also show that those who lose jobs are taking longer to find new roles, as evidenced by ongoing benefit claims climbing to a roughly four-year high.

Overall, the labor market appears stable, if not thriving. This resilience supports broader economic activity, though concerns linger over a potential slowdown due to trade tensions and rising unemployment duration.