US jobless claims edge down as layoffs remain low

The number of Americans filing first-time unemployment claims changed little last week, indicating that layoffs remain limited despite signs of softer hiring in the US labor market.

Initial jobless claims fell by 2,000 to 215,000 in the week ending July 4, the Labor Department said Thursday.

The figure came in below market expectations.

The previous week’s reading was revised up by 2,000 from 215,000 to 217,000.

The four-week moving average, which smooths out weekly volatility, declined by 3,750 to 218,750.

Continuing claims, a proxy for the number of people receiving unemployment benefits, edged up to 1.81 million in the week ending June 27.

The figures suggest employers remain reluctant to reduce headcount, though hiring momentum has weakened.

US nonfarm payrolls rose by 57,000 in June, coming in well below expectations, while the unemployment rate fell to 4.2%, according to the Bureau of Labor Statistics.

Employment continued to rise in professional and business services, social assistance and health care, while leisure and hospitality lost jobs.