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Fewer Americans apply for jobless claims last week as labor market remains sturdy

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Fewer Americans filed for unemployment benefits last week as the labor market remains sturdy despite high interest rates.

The Labor Department reported Thursday that jobless claims for the week ending July 6 fell by 17,000 to 222,000 from 239,000 the previous week.

Economists say that because so-called continuing claims have been on the rise in recent months, it suggests that some who are receiving unemployment benefits are finding it more challenging to land jobs.The four-week average of claims, which evens out some of the week-to-week volatility, fell by 5,250 to 233,500.

Many economists had expected the rapid rate hikes would trigger a recession, but so far that hasn’t happened, thanks in large part to strong consumer demand and a resilient labor market. As inflation continues to ease, the Fed's goal of a soft-landing — bringing down inflation without causing a recession and mass layoffs — appears within reach.

While the labor market remains historically healthy, recent government data suggest some softness creeping in.

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