Washington: US applications for jobless benefits tumbled to their lowest level in more than five decades last week as layoffs remained historically low despite global economic uncertainty.
The number of Americans applying for unemployment benefits in the week ending July 18 declined by 22,000 to 187,000, the Labour Department reported on Thursday. That is the fewest number of weekly applications since the week ending September 6, 1969, according to Labour Department data.
It is also well below the 215,000 new applications forecast by analysts surveyed by data firm FactSet.
Weekly filings for unemployment benefits are considered a proxy for layoffs and are viewed as a near real-time indicator of the health of the US labour market.
Despite surging oil prices following the US military attack on Iran, the American labour market remains healthy and layoffs remain historically low. However, analysts say a prolonged war and persistently high energy costs could eventually erode labour market strength, forcing companies to reduce costs by cutting jobs.
"The economic crisis caused by the energy supply shock is not over yet," said Carl Weinberg, chief economist at High Frequency Economics. "But the labour market has yet to show any sign of wear and tear from the surge in oil prices."
The price of a barrel of US crude surged nearly 5 per cent early on Thursday to more than USD 91, its highest level in about six weeks. Petrol prices in the US have also climbed above an average of USD 4 a gallon. That not only squeezes consumers' budgets but also raises costs for businesses, particularly those heavily dependent on fuel.
In its June jobs report released earlier this month, the government reported that employers slowed hiring, adding only 57,000 jobs. That was less than half the previous month's total and a sign that companies remain cautious about expanding their workforce. The unemployment rate dropped to 4.2 per cent from 4.3 per cent in May, although the decline was largely because many unemployed people stopped looking for work and were therefore no longer counted as unemployed.
June's modest hiring followed relatively stronger job gains over the previous three months, easing concerns that the conflict with Iran could derail an already fragile labour market.
Weekly jobless claims have stabilised mostly within a range of 200,000 to 250,000 since the US economy emerged from the pandemic recession. However, hiring began slowing about two years ago and weakened further in 2025 due to President Donald Trump's tariffs, cuts to the federal workforce and the lingering effects of high interest rates aimed at controlling inflation.
Among the companies that have recently reduced their workforce are Verizon, UPS, Amazon, Disney, Starbucks and Walmart.
Earlier this month, Microsoft said it was cutting 4,800 jobs, about 2.1 per cent of its global workforce, including a significant number of employees in its Xbox gaming division.
Thursday's data also showed that the four-week moving average of weekly jobless claims, which smooths out short-term volatility, fell by 7,250 to 207,500.
The total number of Americans receiving unemployment benefits for the week ending July 11 fell by 2,000 to just under 1.8 million, also a historically healthy level.
